Hog Futures Extend Rally on Signs of Rising Demand; Cattle GainMarley DelDuchetto Kayden
Hog futures rose for the fifth straight session, the longest rally since March, on signs of increasing demand for U.S. pork. Cattle also advanced.
Meatpacking plants slaughtered about 365,000 hogs yesterday, up 2.8 percent from the prior week, according to the U.S. Department of Agriculture. Exporters sold 11,000 metric tons of pork in the week through July 25, up 38 percent from the prior seven days, USDA data show. Wholesale prices are up 3.4 percent this month through yesterday as boxed pork reached $1.0456 a pound, the highest since July 9.
“Our domestic demand is stronger than what we thought and that has pushed” up pork prices, Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview.
Hog futures for October settlement advanced 1.1 percent to close at 86.45 cents a pound at 2 p.m. on the Chicago Mercantile Exchange, extending the longest streak since March 26.
Cattle futures for October delivery rose 0.1 percent at $1.24675 a pound on the CME. On Aug. 2, prices touched $1.241, the lowest for a most-active contract since July 9.
Feeder-cattle futures for September settlement added 0.4 percent at $1.5765 a pound.