Hog futures fell, heading for the longest stretch of losses this year, on signs that U.S. pork supplies are outpacing demand. Cattle were little changed.
Wholesale pork fell 1.2 percent yesterday, while spot hogs slumped 2.6 percent, the biggest slide since Dec. 10, U.S. Department of Agriculture data show. Meatpackers have processed 419,000 hogs this week, up 1.7 percent from a week earlier. Pork inventories rose 14 percent last year, the latest government figures show.
“We do have a lot of pork in cold storage,” Christian Mayer, a market adviser at Northstar Commodity Investments Co. in Minneapolis, said in a telephone interview. “We still have to work through a lot of pork, a lot of supplies.”
Hog futures for April settlement dropped 0.7 percent to 87.75 cents a pound at 9:31 a.m. on the Chicago Mercantile Exchange. A close at that price be the third straight decline, the longest slump since Dec. 31.
Cattle futures for April delivery rose 0.1 percent to $1.3235 a pound.
Feeder-cattle futures for March settlement climbed 0.4 percent to $1.4945 a pound.
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