Hog futures dropped on speculation that U.S. demand is slowing because of high pork prices and amid concern that the rising dollar is curbing exports. Cattle prices rose.
Wholesale-pork prices are up 29 percent this year and reached $1.1133 a pound on June 26, the highest since at least October 1997, U.S. Department of Agriculture data show. Shipments of the meat are down 13 percent in the five months through May 31 from a year earlier, according to the USDA. The dollar climbed to a three-year high against a basket of six major currencies, reducing the appeal of U.S. supplies for overseas buyers.
Wholesale pork reached “new record highs, which typically would mean you’ll probably move some of your demand,” Mark Schultz, a chief analyst at Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “Couple that with the rising U.S. dollar, and it probably slows export demand for a bit.”
Hog futures for August settlement fell 0.1 percent to 95.425 cents a pound at 10:28 a.m. on the Chicago Mercantile Exchange. Prices were up 11 percent this year though yesterday.
Cattle futures for August delivery gained 0.2 percent to $1.22275 a pound in Chicago.
Feeder-cattle futures for August settlement fell 0.2 percent to $1.5125 a pound.
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