Hog futures rose to a two-week high on speculation that a U.S. winter storm will lower animal weights and delay meat shipments. Cattle also climbed.
Blizzard conditions are forecast for tonight and tomorrow with 2 inches to 5 inches (5 centimeters to 13 centimeters) of snow expected in the Central Plains and as much as 15 inches in parts of Iowa and Wisconsin, Joel Widenor, a vice president for Commodity Weather Group in Bethesda, Maryland, said in a telephone interview. During cold, wet weather, livestock need to use more energy to stay warm, leading to lower weights.
“Weather impeding livestock-weight gains and or transportation of either moving the animal or moving the product always sort of perks up the livestock markets,” Lawrence Kane, a market adviser at Stewart-Peterson Group, said in a telephone interview from Yates City, Illinois. “Some of the conditions are going to get pretty tough on livestock.”
Hog futures for February settlement rose 1 percent to 86.125 cents a pound at 10:17 a.m. on the Chicago Mercantile Exchange, after reaching 86.475 cents, the highest for the most- active contract since Dec. 3. Prices are up 1.2 percent this year through yesterday.
Cattle futures for February delivery advanced 0.5 percent to $1.33625 a pound. Yesterday, the price rallied to $1.3405, the highest ever for the most-active contract.
Feeder-cattle futures for March settlement added 0.6 percent to $1.5535 a pound on the CME.
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