Hog futures rose to the highest in almost two weeks on signs of shrinking U.S. supplies of animals and increasing demand for pork. Cattle prices dropped.
Wholesale-pork prices are up 18 percent since the end of March after yesterday reaching 90.91 cents a pound, the highest since Aug. 20, U.S. Department of Agriculture data show. There were fewer so-called farrowings, or litters produced, last fall, which means there are fewer hogs ready for slaughter at this time of year, said Lou Arens, a broker at PCI Advisory Services in Waucoma, Iowa.
“You’ve got less hogs coming to market,” Arens said in a telephone interview. “You’re finally into that marketing hole where there aren’t as many hogs available.”
Hog futures for June settlement rose 0.2 percent to 92.775 cents a pound at 9:56 a.m. on the Chicago Mercantile Exchange, after touching 93.025 cents, the highest for the most-active contract since May 2.
Cattle futures for August delivery were down 0.1 percent at $1.2025 a pound in Chicago.
Feeder-cattle futures for August settlement fell 0.5 percent to $1.457 a pound.
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