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China imposed two tariffs totaling 50 percent on U.S. pork, closing the export pipeline for pig offal. U.S. processors are being forced to sell these parts at very low prices.
Lost Chinese export demand for offal lowers byproduct values and weighs on hog carcass returns, which is bearish for hog prices.
reuters.comTom PolansekJul 17, 2018After 123 past bearish trade events, Lean Hogs moved a median -0.4% over 5 sessions (43% higher; middle half -2.9% to +2.0%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
China's 50% tariffs closing the offal export outlet force low-priced domestic sales, lowering carcass value and hog sentiment.
