Hogs Decline on Indications of Slack Pork Demand; Cattle DropKatia Dmitrieva and Tony C. Dreibus
Hogs prices fell to the lowest in almost four weeks on signs of slack U.S. pork demand. Cattle futures also declined.
Wholesale pork prices yesterday plunged 1.9 percent, the most since Dec. 14, U.S. Department of Agriculture data show. Tyson Foods Inc. said on Feb. 1 that pork sales fell 2.2 percent in the quarter that ended on Dec. 29 from the same period a year earlier.
“My concern is that it comes back to the demand side of the equation here,” Chad Henderson, the president of Prime Agricultural Consulting Inc., said in a telephone interview from Brookfield, Wisconsin. “That’s going to be the biggest question mark for everyone, as demand for the product may slow.”
Hog futures for April settlement dropped 1.7 percent to 86.25 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Earlier, the price touched 86.2 cents, the lowest for the most-active contract since Jan. 10.
Cattle futures for April delivery declined 0.6 percent to $1.3145 a pound in Chicago. Earlier, the price touched $1.31175, the lowest since Jan. 25.
Feeder-cattle futures for March settlement slid 0.7 percent to $1.4755 a pound on the CME. The price has fallen four straight sessions, the longest slump since Jan. 17.