Hog futures climbed for the first time in three days on speculation beef processors will increase purchases. Cattle also advanced.
The price of hogs (HOGSNATL) for immediate delivery rose 0.8 percent to 80.97 cents a pound, a three-week high, U.S. Department of Agriculture data show. Hog futures slumped 2 percent in the previous two sessions, the biggest two-day loss in a week. The sell-off may be “overdone,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis.
“They’re certainly set up here for some kind of a pop,” Dick Quiter, a broker at McFarland Commodities LLC in Chicago, said in a telephone interview. “Just the thought that the cash was steady to a little firmer kind of inspired the hogs here.”
Hog futures for February settlement rose 0.7 percent to 84.425 cents a pound at 11:10 a.m. on the Chicago Mercantile Exchange. The price is up 5.8 percent in the past 12 months.
Cattle futures for February delivery advanced 0.3 percent to $1.21275 a pound on the CME. Prices have gained 14 percent in the past year.
Feeder-cattle futures for March settlement rose 0.1 percent to $1.51 a pound in Chicago. Yesterday, prices reached a record $1.521.
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