Hogs Advance on Lower Slaughter Estimate; Cattle DeclineDalton Barker
Hog futures rose, capping the longest rally in four weeks, on signs that the U.S. slaughter dropped. Cattle declined from an eight-month high.
In the week ended Oct. 5, the hog slaughter fell 6.5 percent to 2.2 million head from a year earlier, according to Urner Barry Beef, a Bayville, New Jersey-based publisher of agriculture data and livestock-market news.
Widening profit margins may be spurring demand from producers, Dick Quiter, an account executive at McFarland Commodities LLC in Chicago, said in a telephone interview.
Hog futures for December settlement rose 0.3 percent to close at 87.875 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. The price climbed for the fourth straight session, the longest rally since Sept. 6.
Trading for hogs and cattle was 29 percent below the 100-day average, according to data compiled by Bloomberg.
Cattle futures for December delivery fell 0.1 percent to $1.323 a pound. On Oct. 4, the most-active contract reached $1.326, the highest for a most-active contract since Feb. 5.
Feeder-cattle futures for November settlement fell 0.3 percent to $1.65475 a pound.
A partial U.S. government shutdown halted the collection of cash-livestock prices and reduced transparency in the futures market.
Last week, the CME Group Inc., the parent of the Chicago livestock exchange, suspended the publication of measurements of spot prices for hogs and feeder cattle. The indexes, used to settle some futures contracts, depend on data distributed by the U.S. Department of Agriculture.
Today, the agency postponed its monthly report on domestic and global supply and demand, originally scheduled for Oct. 11.