Hog futures extended gains to an eight-week high on signs that demand for U.S. pork is increasing. Cattle prices dropped.
About 443,000 hogs were processed in the week ending Aug. 31, up 7 percent from a week earlier, U.S. Department of Agriculture data show. Wholesale-pork prices are up 1 percent this week, USDA data show, after the Labor Day holiday on Sept. 2, which is the third most-popular day for outdoor barbecues, according to an industry group.
“Product prices improved after Labor Day,” Lawrence Kane, a senior market adviser at Stewart-Peterson Group, said in a telephone interview from Yates City, Illinois. “That’s a signal to me there was good clearance over the holiday.”
Hog futures for October settlement climbed 0.7 percent to 89.775 cents a pound at 10:21 a.m. on the Chicago Mercantile Exchange, after reaching 90.525 cents, the highest for the most-active contract since July 9. The October contract is up 8.9 percent since the end of April.
Cattle futures for October delivery declined 0.5 percent to $1.25375 a pound on the CME. Feeder-cattle futures for October settlement fell 0.2 percent to $1.58975 a pound.
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