Hogs Drop to Five-Week Low on Larger U.S. Herd; Cattle DeclineDalton Barker
Hog futures fell to the lowest in more than five weeks after a government report said the U.S. herd grew. Cattle prices also dropped.
The U.S. herd unexpectedly increased 0.3 percent to 68.36 million hogs from 68.172, the U.S. Department of Agriculture said Sept. 27. A Bloomberg News survey of 10 analysts projected a 1 percent decline, on average. Animals available for slaughter were also higher than anticipated. Average carcass weights increased 1.6 percent last month, USDA data show.
“There is going to be a lot of hogs going to market in the next few weeks,” Dick Quiter, an account executive at McFarland Commodities LLC in Chicago, said in a telephone interview.
Hog futures for December settlement fell 0.8 percent to close at 85.9 cents a pound at 1 p.m. on the Chicago Mercantile Exchange, after touching 85.5 cents, the lowest for the most-active contract since Aug. 23.
Cattle futures for December delivery slid 0.1 percent to $1.319 a pound on the CME.
Feeder-cattle futures for November settlement rose 0.5 percent to $1.6605 a pound.