Hog Futures Slide as Demand for U.S. Pork Ebbs; Cattle Decline

Hog futures declined for the second straight day on speculation that demand for U.S. pork is weakening. Cattle prices also fell.

Spot hogs fell 0.3 percent to 74.02 cents a pound yesterday, the lowest price this week, U.S. Department of Agriculture data show. Meatpackers processed 1.269 million hogs in the first three days of this week, down 1.1 percent from a week earlier, government data show. Wholesale pork prices are down 4.8 percent this year, USDA data show.

“I’m not hearing very good things on product” demand, which “is still really sluggish,” Jason Golly, a vice president of risk-management marketing at Lynch Livestock Inc. in Waucoma, Iowa, said in a telephone interview.

Hog futures for June settlement fell 0.7 percent to 89.45 cents a pound at 10:03 a.m. on the Chicago Mercantile Exchange. The contract is down 2.2 percent this month.

Cattle futures for April delivery slid 0.2 percent to $1.28275 a pound in Chicago. Feeder-cattle futures for May settlement declined 0.6 percent to $1.4365 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

Bloomberg reserves the right to edit or 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.