Hog Futures Slide on Rising U.S. Pork Supplies; Cattle Advance

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.

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

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