Hog prices dropped on signs of increasing supplies of pork in the U.S. Cattle fell to a seven-month low.
Hog carcasses weighed an average 212.35 pounds (96.3 kilograms) on April 6, the highest since at least January 2002, U.S. Department of Agriculture data show. Wholesale pork dropped 0.2 percent to 78.41 cents a pound yesterday, USDA data show. The price has dropped 7.9 percent this year.
“The pork market continues to be soft,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “Summer supplies are going to be up and may be a little bit of an anchor on rallies.”
Hog futures for June settlement declined 0.3 percent to close at 93.35 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. The commodity has gained 11 percent this year.
Cattle futures for June delivery slid 1.3 percent to $1.143 a pound. After the settlement, the price touched $1.14175, the lowest for a most-active contract since Sept. 2. The price has dropped 5.9 percent this year.
Wholesale beef has dropped 8.3 percent this year, USDA data show. On April 6, the price touched $1.7761 a pound, the lowest since Aug. 10, government data show.
“Beef demand overall remains a little lackluster,” Troy Vetterkind, the owner of Vetterkind Cattle Brokerage in Chicago, said in a note.
Feeder-cattle futures for August settlement dropped 0.5 percent to $1.503 a pound.