Hog futures fell on signs that U.S. pork production is increasing as demand ebbs. Cattle gained.
Pork processors slaughtered 1.75 million animals this week, up 3.5 percent from a weak earlier, U.S. Department of Agriculture data show. Hog carcass weights increased 0.2 percent to 211.4 pounds (95.8 kilograms) yesterday, and are up 2.4 percent from a year earlier, according to the USDA.
“Weights are at record levels,” Ron Plain, a livestock economist at the University of Missouri in Columbia, said in a telephone interview. “Domestic pork demand is declining.”
Hog futures for February settlement fell 0.4 percent to close at 90.575 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices jumped 1.1 percent yesterday, the most for the contract since Oct. 28.
Cattle futures for February delivery rose 0.3 percent to $1.3235 a pound on the CME, a second straight gain.
Feeder-cattle futures for January settlement climbed 0.4 percent to $1.63375 a pound.
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