Hogs Drop as Cheaper Feed Signals More Pork Output; Cattle GainElizabeth Campbell
Hog futures declined for the first time in four sessions on concern that a plunge in the cost of livestock feed will spur an increase in U.S. pork supplies. Cattle prices gained.
Corn futures fell for the second day in Chicago and are down 40 percent in the past year on signs U.S. farmers will harvest a record crop this year. Cheaper grain can increase pork production as farmers boost feed rations. Wholesale pork fell 0.2 percent to 99 cents a pound yesterday, the lowest in almost five weeks, U.S. Department of Agriculture data show.
“We have very adequate hogs around,” Lawrence Kane, a senior market adviser at Stewart-Peterson Group, said in a telephone interview from Yates City, Illinois. “Hog numbers have remained fairly stable.”
Hog futures for October settlement fell 0.6 percent to close at 86.05 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices rose 2.6 percent in the previous three sessions.
Cattle futures for October delivery rose 0.2 percent to $1.26925 a pound on the CME. Prices are down 4.1 percent this year. Feeder-cattle futures for October settlement advanced 0.4 percent to $1.57625 a pound.