Hog Prices Slump on Signs of Ample Pork Supplies; Cattle Steady

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.

To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.