Hog Prices Slide on Signs of ‘Ample’ Pork Supplies; Cattle Climb
Hog futures fell, heading for the first two-day slump since last month, on signs of increasing U.S. pork supplies. Cattle prices rose.
Meatpackers processed 430,000 hogs yesterday, up 0.5 percent from a week earlier, U.S. Department of Agriculture data show. Pork production will climb 13 percent in the three months ended Dec. 31 from the previous three months, government forecasts show.
“We’re going to have ample supplies of pork in the fall,” Lawrence Kane, a senior market adviser at Stewart-Peterson Group, said in a telephone interview from Yates City, Illinois. “The fourth quarter is usually a big production time frame for hogs. The market is going to be leery of that.”
Hog futures for December settlement fell 0.3 percent to 87.275 cents a pound at 10:51 a.m. on the Chicago Mercantile Exchange, after dropping 0.1 percent yesterday. The last time prices slid two straight days was on Aug. 22. The contract is up 3 percent this month.
Cattle futures for October delivery rose 0.3 percent to $1.25425 a pound on the CME. Feeder-cattle futures for October settlement climbed 0.7 percent to $1.58875 a pound.
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