Hogs Shift Focus to Tuesday Following Monday Strength

Austin Schroeder Barchart Tue May 13, 7:31AM CDT
Pig feeding from trough in pen by Yuliya Sidorova via Istock

Lean hog futures saw gains on Monday, with contracts up anywhere from 35 cents to $2.05. Preliminary open interest was up 6,894 contracts on Monday. USDA’s national average base hog negotiated price was reported at $95.29 on Monday afternoon, up $0.82 The CME Lean Hog Index was down 8 cents on May 8, at $89.99.

The weekend meeting between US and China trade reps saw progress, as there was a drop in tariffs by 115% for each country for 90 days. The US dropped their rate to 30% on Chinese goods, while China cut theirs to 10% for US goods. Following some cancellations of pork, this should be seen as friendly.

The Monday afternoon FOB plant pork cutout value was down $1.32 on a carcass basis, at $96.51. The belly was the only primal that was reported higher. Federally inspected hog slaughter estimated by the USDA for Monday at 466,000 head. That was down 16,000 head from the previous Monday but up 1,504 head above the same Monday last year.

May 25 Hogs  closed at $90.725, up $0.350,

Jun 25 Hogs  closed at $98.300, up $0.725

Jul 25 Hogs  closed at $102.475, up $2.050,


On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.