Oct. 5 (Bloomberg) -- Hog futures climbed to a six-week high on speculation that global economic woes will ease, signaling higher demand for U.S. meat. Cattle also gained.
The Standard & Poor’s GSCI Index of 24 commodities rose for the first time in four sessions after Federal Reserve Chairman Ben S. Bernanke said the central bank may take further steps to help an economic recovery. On Oct. 3, wholesale pork reached 98.32 cents a pound, a five-week high. Yesterday, spot-market hogs advanced for the fourth straight session, government data show.
“If the economy does well, everybody’s got more disposable income to eat,” helping boost meat consumption, Jason Golly, a vice president of risk-management marketing at Lynch Livestock Inc., said in a telephone interview from Waucoma, Iowa.
Hog futures for December settlement rose 1.575 cents, or 1.8 percent, to settle at 88.425 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. The price touched 88.7 cents today, the highest for a most-active contract since Aug. 23. The commodity has advanced 11 percent this year.
U.S. meatpackers processed 1.282 million hogs in the week through today, up 1.9 percent from the same period a year earlier, U.S. Department of Agriculture data show.
Cattle futures for December delivery climbed 1.1 cents, or 0.9 percent, to settle at $1.2265 a pound in Chicago. The price is up 13 percent in 2011.
The GSCI Index rose as much as 3 percent today after losing 5.1 percent in the previous three sessions. The dollar headed for the first decline in six sessions against a basket of six major currencies. A weaker greenback increases the investment appeal of raw materials.
“It’s a positive commodity day today as much as anything,” Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois, said in a telephone interview.
Feeder-cattle futures for November settlement gained 0.85 cent, or 0.6 percent, to $1.4175 a pound.
--Editors: Millie Munshi, Patrick McKiernan
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