Hogs Drop on Speculation U.S. Pork Output Will Rise; Cattle GainElizabeth Campbell
Hog futures fell for a second session on speculation that U.S. supplies will increase as tumbling feed costs and high pork prices encourage farmers to expand their herds. Cattle advanced.
The domestic hog-breeding herd on June 1 was 0.3 percent bigger than a year earlier, the U.S. Department of Agriculture said in a June 28 report after the close of trading. Analysts projected a 0.1 percent decline, on average. The government said in a separate report that farmers will plant the most acres of corn since 1936, sending prices to a 32-month low.
“Down the road, we’re going to have adequate supplies” of pork, Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview.
Hog futures for August settlement fell 0.5 percent to settle at 97 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices fell 2 percent on June 28.
The price of corn, the main ingredient in livestock feed, touched $5.005 a bushel on the Chicago Board of Trade today, the lowest for the most-active contract since Oct. 8, 2010.
Cattle futures for August delivery added 0.1 percent to $1.22175 a pound on the CME. Feeder-cattle futures for August settlement climbed 1.2 percent to $1.51225 a pound.