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.
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