Hog futures posted their biggest gain in more than a week on speculation that a Midwest heat wave and higher feed-grain costs will slow U.S. pork production. Cattle prices fell for a third day.
Temperatures are expected to increase in the Midwest over the next five days, according to MDA EarthSat Weather. Hot weather tends to make hogs eat less, so the animals take longer to reach slaughter weights. The price of corn, the main ingredient in livestock feed, rose for a second straight week on the Chicago Board of Trade.
The heat “should slow the weight gains,” Doug Houghton, a commodity analyst at Brock Associates, said in a telephone interview from Milwaukee. “It could to some extent slow hog movement.”
Hog futures for October settlement climbed 0.8 percent to close at 85.1 cents a pound at 1 p.m. on the Chicago Mercantile Exchange, the biggest gain for the most-active contract since Aug. 14. Prices lost 1.9 percent this week.
Cattle futures for October delivery fell 0.4 percent to $1.267 a pound in Chicago, extending this week’s decline to 1 percent.
Feeder-cattle futures for September settlement slid 0.7 percent to $1.5665 a pound.