Cattle futures dropped in Chicago, marking the biggest two-day slump in almost seven weeks, on signs of increasing U.S. beef supplies. Hog prices fell to a one-week low.
Steers weighed 1,375 pounds (623.7 kilograms) on average at slaughter last week, up 23 pounds from the same period a year earlier, U.S. Department of Agriculture data show. With heavier animals and higher grain costs, feedlots have more incentive to get rid of their inventory, said Mark Schultz, the chief analyst at Northstar Commodity Investment Co.
“You’ve got to sell more cattle faster, and that puts more meat on the market short term,” Schultz said in a telephone interview from Minneapolis.
Cattle futures for October delivery slumped 0.3 percent to settle at $1.24075 a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices have slumped 1.4 percent in two days, the biggest such drop since June 14.
Feeder-cattle futures for August settlement gained 0.8 percent to $1.39775 a pound on the CME.
Hog futures for October settlement declined 0.7 percent to settle at 79.725 cents a pound in Chicago, after reaching 79.35 cents, the lowest since July 25. The price is down 5.4 percent this year.
Wholesale pork fell 3.7 percent last month to 91.91 cents a pound, and hog prices on the spot market declined 8.2 percent to 89.07 cents a pound, USDA data show.