Hog futures rallied the most in a week on speculation that a Midwest heat wave and higher feed-grain costs will slow U.S. pork production. Cattle prices also rose.
Temperatures are expected to increase in the Midwest over the next five days, according to MDA EarthSat Weather. Hot weather tends to make hogs eat less, delaying production because it takes longer to reach slaughter weights. The price of corn, the main ingredient in livestock feed, is headed for its second straight weekly gain on the Chicago Board of Trade.
The heat “should slow the weight gains,” Doug Houghton, a commodity analyst at Brock Associates, said in a telephone interview from Milwaukee. “It could to some extent slow hog movement.”
Hog futures for October settlement climbed 0.7 percent to 85 cents a pound at 10:46 a.m. on the Chicago Mercantile Exchange. A close at that price would be the biggest gain since Aug. 14.
Cattle futures for October delivery added 0.1 percent to $1.273 a pound in Chicago.
Feeder-cattle futures for September settlement slid 0.1 percent to $1.5755 a pound.
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