Hogs Rise on Speculation Animal Supply May Tighten; Cattle Drop
Hog futures advanced for the first time in four sessions on speculation that animal supplies in the U.S. may shrink. Cattle prices fell.
Wholesale pork rose 0.5 percent to $1.0482 a pound yesterday, the highest since Aug. 22, 2011, U.S. Department of Agriculture data show. Porcine epidemic diarrhea virus, a hog disease that has spread to at least 11 states, may slow weight gain and shrink hog litters, said Lawrence Kane, a senior market adviser at Stewart-Peterson Group.
Hog futures for August settlement rose 1 percent to 97.6 cents a pound at 10:16 a.m. on the Chicago Mercantile Exchange. The August contract gained 0.2 percent this year through yesterday.
The U.S. Department of Agriculture reported a detection of PEDV on May 17 and noted that it doesn’t affect people and is not a food-safety concern. Spot hogs added 0.4 percent to 99.58 cents a pound yesterday, the sixth gain in seven sessions, government data show.
Cattle futures for August delivery declined 0.1 percent to $1.1915 a pound in Chicago. Prices were down 9.9 percent this year through yesterday.
Feeder-cattle futures for August settlement slipped 0.3 percent to $1.44075 a pound.
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