Chicago Mercantile Exchange (CME) lean hog futures gained on Thursday, buoyed by U.S. President Donald Trump’s decision to temporarily exempt goods from Mexico from the steep tariffs imposed earlier this week. The move alleviated concerns about export disruptions, which had pressured hog futures earlier, providing a boost to market values.
Hog Futures Rebound Amid Trade Relief
Mexico is the largest buyer of several U.S. agricultural products, including pork, corn, and wheat. Earlier in the week, tariff threats rattled the market, raising fears of weakened demand. However, Thursday’s exemption helped stabilize sentiment, lifting hog futures.
The benchmark CME April hog contract closed up 1.950 cents at 86.650 cents per pound, while June hog futures posted a stronger gain, rising 2.450 cents to settle at 97.025 cents per pound.
On Truth Social, Trump initially announced an exemption for Mexico, set to expire on April 2. However, the official amendment he signed also includes Canada, ensuring that U.S. pork exports to both key trade partners remain uninterrupted in the short term. The three nations remain closely tied through the U.S.-Mexico-Canada Agreement (USMCA), a trade deal Trump originally negotiated in his first term.
Cattle Markets Tick Lower on Trade Stability
While hog futures benefited from the tariff reprieve, cattle markets moved in the opposite direction. As trade fears eased, market players anticipated a continued flow of feeder cattle from Mexico to U.S. ranchers, removing earlier price pressures.
“We get 100,000 head of feeder cattle from Mexico every month, and there was a fear that supply was going to be too expensive. Now that trade is back to more normal, we saw cattle futures adjust,” said Don Roose, president of Iowa-based U.S. Commodities.
CME April live cattle futures settled down 0.275 cent at 196.275 cents per pound, while April feeder cattle futures dropped 1.650 cents to 274.425 cents per pound.
Adding to cattle market weakness, Wall Street equity declines fueled concerns over consumer demand for high-priced beef cuts, further pressuring prices.
Market Outlook: Stability in Hog Trade Offers Relief
For the hog sector, the exemption offers much-needed stability, allowing U.S. pork exports to continue without immediate disruption. However, producers should keep a close eye on further trade developments, as the temporary nature of the exemption could lead to renewed volatility in the weeks ahead.
Stay tuned to Swine Web for ongoing updates on market trends, trade developments, and pricing shifts in the global pork industry.
