Hog Futures Slide on Rising U.S. Pork Supplies; Cattle AdvanceDalton Barker
Hog futures fell on signs that U.S. pork production is increasing as demand ebbs. Cattle gained.
Pork processors slaughtered 1.75 million animals this week, up 3.5 percent from a weak earlier, U.S. Department of Agriculture data show. Hog carcass weights increased 0.2 percent to 211.4 pounds (95.8 kilograms) yesterday, and are up 2.4 percent from a year earlier, according to the USDA.
“Weights are at record levels,” Ron Plain, a livestock economist at the University of Missouri in Columbia, said in a telephone interview. “Domestic pork demand is declining.”
Hog futures for February settlement fell 0.4 percent to close at 90.575 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices jumped 1.1 percent yesterday, the most for the contract since Oct. 28.
Cattle futures for February delivery rose 0.3 percent to $1.3235 a pound on the CME, a second straight gain.
Feeder-cattle futures for January settlement climbed 0.4 percent to $1.63375 a pound.