Hog futures fell the most in more than a week on speculation that pork supplies in the U.S. will increase. Cattle prices were little changed.
Spot hogs slumped 0.4 percent to 88.65 cents a pound yesterday, and wholesale-pork prices are down 13 percent since June 30, heading for the worst quarterly decline in a year, government data show. U.S. pork output is projected to reach 6.425 billion pounds (2.9 million metric tons) in the three months ended Dec. 31, up 13 percent from the previous quarter, according to the U.S. Department of Agriculture. That’s also 2.9 percent higher than a year earlier, government data show.
“The feeling is as temperatures cool, and we get a new corn supply, the weights and efficiencies go up,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “There’s still a feeling that as we get into the fourth quarter that numbers are going to increase.”
Hog futures for October settlement dropped 0.6 percent to 90.375 cents a pound at 11 a.m. on the Chicago Mercantile Exchange, heading for the biggest decline for the most-active contract since Aug. 28.
Cattle futures for October delivery slid less than 0.1 percent to $1.253 a pound on the CME. Feeder-cattle futures for October settlement slipped 0.1 percent to $1.57925 a pound.
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