Hogs

• Lean hog futures closed lower for the 6^th day in a row on Friday. April settled at $91.275, down $0.55 while the Jun-Dec contracts were down $1.00 to $1.20. The sharp drop in futures is creating a historically strong basis vs the April contract which could provide futures price support as the cutout and negotiated hog market have been relatively steady.
• The negotiated national average lean hog price on Friday afternoon was $85.12 and has spent most of the last few weeks within $3 plus or minus $85.
• The pork cutout continues to trade in a sideways range as well, losing $0.49 on Friday ending the week at $95.16.
• The Trump Administration reached a trade deal with Taiwan that could potentially have a positive impact on US pork exports to Taiwan. As part of the agreement 99% of current tariffs are to be reduced or removed.

April’26 Hogs 

Grains

• Corn futures settled just slightly higher in quiet trade on Friday. Front month March closed at $4.3175 up $0.005 and the May-Sep contracts up $0.0025 to $0.01.
• Dryness in Argentina continues to be a concern, but increased precipitation over the weekend and early into the week is expected.
• Soybean futures closed modestly lower on Friday but overall had another strong week with current crop year contracts gaining close to 20 cents week over week.
• Front month March was down $0.0425 at $11.33, and the May-Sept contracts were down $0.0275 to $0.0375.

March’26 Corn 

March’26 Soybeans

Cattle

• Cattle futures settled mixed on Friday despite firmer negotiated trade. Front month Feb closed at $243.075 up $0.575, and the Apr-Oct contracts were down $0.025 to $0.40.
• Negotiated trade was $5-6 higher than last week in the north at $245-246 and $2-5 higher in the south at $246-249
• Boxed beef prices were mixed with choice down $0.37 at $364.47 and the select up $0.39 at 363.42. The cutout has not kept pace with live cattle trade and continues to push already very poor packer margins deeper in the red.

February’26 Cattle

Weather

• The southern precip system is firing up in the SW U.S. this morning, bringing rains across the southern Plains and southern/southeastern U.S. through the weekend; extended maps remain generally wet north/dry south into late February. Temperatures will stay warm through the end of the month as well.
• Argentine rains fell far north yesterday but chances look decent for most areas through early next week, falling again center-west for the 6-10 day period.
• Brazilian rains were scattered north to south over the past 24 hours, with good coverage continuing throughout into early next week, better NE for the 6-10.