Hog Futures Gain on Outlook for U.S. Pork Demand; Cattle AdvanceElizabeth Campbell
Hog futures gained on signs of increasing demand for U.S. pork amid tight supplies. Cattle also advanced.
About 343,000 hogs were processed in the Iowa and southern Minnesota region in the week ending July 6, down 8 percent from the previous week, U.S. Department of Agriculture data show. The average carcass weight dropped 0.2 percent. Grocers may be increasing purchases on the outlook for rising demand next month, said Rich Nelson, the chief strategist at Allendale Inc.
“It is hopes for some last minute August grilling,” Nelson, who is based in McHenry, Illinois, said in a telephone interview. “Fewer animals and generally low weights” are also boosting prices, he said.
Hog futures for October settlement rose 0.6 percent to close at 84.7 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. The contract is down 1.4 percent this year.
Cattle futures for October delivery climbed 0.5 percent to $1.26675 a pound on the CME. Feeder-cattle futures for August delivery advanced 1.7 percent to $1.5265 a pound.