Jan. 7 (Bloomberg) -- Hog futures climbed on signs of increasing U.S. meatpacker demand for animals. Cattle prices rose.
Last week, wholesale pork advanced 2.6 percent, and spot hogs climbed 2.4 percent, the biggest gains since late November, U.S. Department of Agriculture data showed. Meatpackers processed 1.975 million hogs, up 13 percent from a week earlier, according to government figures. About 432,000 hogs were processed today, up 21 percent from a week earlier, the USDA estimated.
“Packers want a lot of hogs this week,” Dennis Smith, an analyst at Archer Financial Services, said in a telephone interview in Chicago. “The demand is there for the product.”
Hog futures for February settlement rose 0.1 percent to close at 86.3 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Last week, the price dropped 0.2 percent, the second straight decline.
Cattle futures for February delivery gained less than 0.1 percent to settle at $1.33 a pound. Last week, the commodity declined 0.5 percent, the first drop since Nov. 30.
Steers averaged $1.2812 a pound last week, up 0.9 percent from a week earlier, government data show.
Feeder-cattle futures for March settlement fell 0.1 percent to close at $1.561 a pound.
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