Hog Bulls Gaining Ground Following Weekend Trade Talks
Lean hog futures are popping higher so far on Friday, with 27 cents to $1.90 in the nearbys. USDA’s national average base hog negotiated price was reported at $94.33 on Monday morning, down $0.45. The CME Lean Hog Index was down 8 cents on May 8, at $89.99.
The meeting between US and China trade reps saw progress, as an announcement overnight showed 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%. Following some cancellations of pork, this should be seen as friendly.
Managed money increased their net long position in lean hog futures and options by 2,979 contracts as of May 6, taking the total to 70,622 contracts.
The Monday morning FOB plant pork cutout value was down 49 cets on a carcass basis, at $97.34. The belly, butt, and loin were the only primals that was reported lower. Federally inspected hog slaughter estimated by the USDA for last week was 2.437 million head. That was down 49,000 head from the previous week but was 56,877 head above the same week last year.
May 25 Hogs are at $90.650, up $0.275,
Jun 25 Hogs are at $98.175, up $0.600
Jul 25 Hogs is at $102.325, up $1.900,
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.