Hog Fall to 4-Week Low; Cattle Drop From 10-Month HighDalton Barker
Hog futures fell to a four-week low as lower costs for livestock feed boosted animal weights, increasing prospects for pork supplies. Cattle dropped from the highest in almost 10 months.
The average hog carcass weighed 212 pounds (96 kilograms) on Nov. 7, up 2.2 percent from a year earlier, government data showed. The price of corn, the main ingredient in feed, has tumbled 38 percent this year on forecasts that the U.S. crop will increase to a record.
“The biggest thing now is the carcass weights and how we’ve seen those ratchet higher,” Ryan Turner, a risk-management consultant at FCStone Group Inc. in Kansas City, Missouri, said in a telephone interview. The outlook for more supplies “is a function of the new-crop corn in terms of quality and price,” he said.
Hog futures for December settlement fell 1 percent to close at 87.2 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. The price touched 87.05 cents, the lowest for a most-active contract since Oct. 15.
Cattle futures for December delivery dropped 0.1 percent to $1.34275 a pound. Earlier, the price reached $1.3475, the highest since Jan. 15, on concern that U.S. beef supplies may ebb.
Wholesale beef dropped for the fifth straight session, the longest slump since July.
Feeder-cattle futures for January settlement rose less than 0.1 percent to $1.642.