Hog futures headed for the longest rally in 15 months on speculation that U.S. consumers will buy more pork as beef costs climb. Cattle rose.
Wholesale pork has dropped 6.3 percent since the end of July, while beef jumped 5.1 percent, U.S. Department of Agriculture data show. About 443,000 hogs were processed in the week ending Aug. 31, up 7 percent from a week earlier, according to the USDA. Through yesterday, futures gained 4.3 percent this year.
“We’re seeing some consumers who are having trouble with the high cost of beef,” Rich Nelson, the chief strategist at Allendale Inc. in McHenry, Illinois, said in a telephone interview. “The dramatic increase in prices we’re seeing in beef” will prompt more Americans to choose pork, he said.
Hog futures for October settlement climbed 1.3 percent to 90.55 cents a pound at 10:21 a.m. on the Chicago Mercantile Exchange. Prices are headed for the sixth straight gain, which would the longest string of increases since June 1, 2012.
Cattle futures for October delivery rose 0.3 percent to $1.2555 a pound in Chicago. Prices dropped 1.4 percent in the previous four sessions.
Feeder-cattle futures for September settlement fell 0.1 percent to $1.586 a pound on the CME.
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