Lean hog futures market bulls are working to stabilize prices. Price action in hog futures paused Wednesday following the recent selling pressure that saw lower closes in December futures for five sessions in a row. Firmly bearish technicals and steadily declining cash hog prices are limiting buying interest in the hog futures market. December lean hog futures’ discount to the cash index has somewhat limited selling interest in futures recently. The latest CME lean hog index is down another 24 cents at $92.03. Today’s projected cash hog index is down another 17 cents at $91.86. Wednesday’s national direct 5-day rolling average cash hog price quote was $87.90.
U.S. Senate Finance Panel Grills USTR Nominee on Potatoes & Meat
Dr. Julie Callahan, President Trump’s nominee to serve as Chief Agricultural Negotiator at the Office of the U.S. Trade Representative, faced pointed questions from senators about the administration’s trade strategy with Argentina during a contentious Senate Finance Committee hearing on Oct. 29. The scope of the hearing provided a full view of U.S. agricultural trade priorities under the Trump administration’s reciprocal-trade framework.
Sen. Ted Cruz (R-Tex.) and Sen. John Barrasso (R-Wyo.) both raised concerns about the administration’s plan to increase Argentine beef imports under an expanded tariff-rate quota (TRQ). Cruz said there was “unanimity in the room that we should be standing strongly with our cattle ranchers.” Barrasso pressed Callahan on the timing and size of the planned 80 000-ton TRQ increase and asked how she would ensure that “U.S. ranchers aren’t undercut by lower-standard imports.”
In response to Barrasso’s questions, she said the talks with Argentina are “ongoing” and that her goal is to “reverse the U.S. agricultural trade deficit” through agreements on reciprocal trade that would turn deficits into surpluses and “ensure that U.S. cattlemen have access to markets around the world.” This phrasing — specifically her emphasis on reciprocal trade and reversing the deficit — clearly reflects a U.S. intent to obtain concessions from Argentina in exchange for expanded access.
Daines devoted a significant portion of his questioning to the collapse in U.S. beef exports to China since March. Daines said that foreign competitors — notably Australia and Brazil — were “filling the void” left by reduced U.S. shipments. He asked: “Dr. Callahan, are we making any progress in reopening the China market, the second-largest beef export market in the world, or finding additional markets for U.S. beef?”
Callahan’s response: She acknowledged the sharp decline and said, “If confirmed, I am committed to reopening China’s market to U.S. beef. China’s behavior can be explained only with one word — retaliation.”
She added that during President Trump’s first term, USTR provided the White House with weekly reports on China’s compliance under the Phase One trade deal and that she intends to “reverse that trend and rebuild access to the Chinese market.”
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