Hog futures gained for a sixth session, the longest rally in 15 months, on speculation that U.S. consumers will buy more pork as beef costs climb. Cattle rose.
Wholesale-pork prices as of yesterday were down 6.3 percent since the end of July, while beef advanced 5.1 percent, U.S. Department of Agriculture data show. About 443,000 hogs were processed in the week ending Aug. 31, up 7 percent from a week earlier, according to the USDA. Futures have gained 6 percent this year.
“We’re seeing some consumers who are having trouble with the high cost of beef,” Rich Nelson, the chief strategist at Allendale Inc. in McHenry, Illinois, said in a telephone interview. “The dramatic increase in prices we’re seeing in beef” will prompt more Americans to choose pork, he said.
Hog futures for October settlement climbed 1.7 percent to settle at 90.9 cents a pound at 1 p.m. on the Chicago Mercantile Exchange, capping the longest string of increases since June 1, 2012.
Cattle futures for October delivery rose 0.4 percent to $1.25675 a pound in Chicago, after a four-session slide of 1.4 percent. Feeder-cattle futures for September settlement fell 0.5 percent to $1.58025 a pound on the CME.