Hog Futures Advance on Signs of Shrinking Animal SupplyDalton Barker
Hog futures advanced on speculation that declining U.S. slaughter rates are signaling shrinking supplies of animals amid increasing meatpacker demand. Cattle prices rose.
Processors slaughtered an estimated 430,000 hogs today, down 1.8 percent from a week earlier, U.S. Department of Agriculture data show. On Nov. 22, hogs for immediate delivery increased 1 percent to 77.37 cents a pound, the biggest gain in three weeks, USDA data showed.
“Demand must be pretty good, and numbers might not be stacking up,” Dennis Smith, a senior account executive at Archer Financial Services Inc. in Chicago, said in a telephone interview.
Hog futures for February settlement rose 0.1 percent to close at 89.8 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. On Nov. 22, the price declined 1 percent, the most in a week.
Cattle futures for February delivery gained 0.1 percent to $1.31925 a pound.
Feeder-cattle futures for January settlement fell 0.4 percent to $1.628 a pound.