Hog Prices Slump on Signs of Ample Pork Supplies; Cattle SteadyElizabeth Campbell
Hog futures fell, capping the longest slump this year, on signs that U.S. pork supplies are outpacing demand. Cattle were little changed.
Wholesale pork fell 1.2 percent yesterday, while spot hogs slumped 2.6 percent, the biggest slide since Dec. 10, U.S. Department of Agriculture data show. Meatpackers have processed 835,000 hogs this week, up 1 percent from a week earlier. Pork inventories rose 14 percent last year, the latest government figures show.
“We do have a lot of pork in cold storage,” Christian Mayer, a market adviser at Northstar Commodity Investments Co. in Minneapolis, said in a telephone interview. “We still have to work through a lot of pork, a lot of supplies.”
Hog futures for April settlement dropped 0.7 percent to close at 87.7 cents a pound at 1 p.m. on the Chicago Mercantile Exchange, the third third straight decline and the longest slump since Dec. 31. Prices have lost 1.8 percent since Jan. 31.
Cattle futures for April delivery rose less than 0.1 percent to settle at $1.323 a pound on the CME.
Feeder-cattle futures for March settlement fell 0.2 percent to close at $1.48525 a pound in Chicago.