Hog futures fell for the fourth straight session, the longest slump in a month, as heavier animals signal increased U.S. pork supply.
Hog carcasses averaged almost 210 pounds (95 kilograms) on Nov. 26, the most since at least 2002, according to U.S. Department of Agriculture data. This year’s improved corn quality compared with 2009 has increased animal-weight gains, said Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois.
“We’ve got tonnage this year that we need to deal with,” Kane said. There’s “just a lot more feed quality in this year’s crop, and it’s added some weight.”
Hog futures for February settlement lost 0.525 cent, or 0.7 percent, to settle at 75.25 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices fell 3 percent in the past four sessions, capping the longest slump since Nov. 1. The price still is up 15 percent this year.
Yesterday, wholesale-pork prices fell for the third session in a row and dropped 2 percent to 77.41 cents a pound, USDA data show.
“There is a seasonal tendency for the next couple of weeks for hogs to trend lower,” Kane said.
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