Hogs Rise on Bets U.S. Pork Demand Will Rise; Cattle DropElizabeth Campbell
Hogs climbed to a three-week high on speculation that U.S. demand for pork will increase as warmer weather sends people outdoors for barbecues. Cattle fell.
Yesterday, wholesale pork climbed to a six-month high, and spot hogs jumped 3.6 percent, the most since September, the latest U.S. Department of Agriculture data show. Most of the Midwest will have drier, warmer weather through early next week, Telvent DTN in Omaha, Nebraska, said yesterday.
“There’s no doubt that the forecast for good weather across the Midwest has got the market expecting better weekend clearance of pork,” Doug Houghton, a commodity analyst at Brock Associates in Milwaukee, said in a telephone interview. “At the same time, we’ve got hog supplies that should be tightening seasonally.”
Hog futures for June settlement advanced 0.8 percent to close at 92.525 cents a pound at 1 p.m. on the Chicago Mercantile Exchange, after touching 92.55 cents, the highest for a most-active contract since April 4.
The June contract rose 2.6 percent this week, the biggest weekly gain since July. Yesterday, wholesale pork climbed 1 percent to 87.33 cents a pound, the highest since Oct. 23.
Cattle futures for June delivery fell 0.2 percent to settle at $1.226 a pound.
Feeder-cattle futures for August settlement declined 0.6 percent to $1.51175 a pound.