Cattle Trades Near 10-Month High on Tight Supplies; Hogs Slide

Cattle futures held near a 10-month high on signs of tightening U.S. supplies. Hog prices slid.

Meatpackers processed an estimated 607,000 animals in the week through through Nov. 9, a 2.3 percent decline from a week earlier and a 4 percent reduction compared with the same period a year earlier, U.S. Department of Agriculture data show.

“The biggest issue is supply,” Rich Nelson, the chief strategist at Allendale Inc. in McHenry, Illinois, said in a telephone interview. “It is a seasonal drop, and this will be dramatic,” compared with previous years.

Cattle futures for February delivery fell less than 0.1 percent to $1.3435 a pound at 10:05 a.m. on the Chicago Mercantile Exchange, after reaching $1.3475, the highest for a most-active contract since Jan. 15.

Hog futures for December settlement slipped 0.4 percent to 87.675 cents a pound on the CME.

Feeder-cattle futures for January settlement gained 0.2 percent to $1.6445 a pound.

To contact the reporter on this story: Dalton Barker in Chicago at dbarker40@bloomberg.net

To contact the editor responsible for this story: Millie Munshi at mmunshi@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.