Hog futures fell for the first time in four sessions as U.S. farmers sent more animals to slaughter after livestock-feed costs jumped. Cattle were little changed.
About 2.43 million hogs were slaughtered last week, up 18 percent from a week earlier, U.S. Department of Agriculture data show. The most-severe drought in the U.S. since 1956 drove up the price of corn, the main ingredient in animal feed, by 55 percent from mid-June to Sept. 14.
“We have a huge number of slaughter hogs coming to market as farmers are trying to get them off the farm and not feed them anymore,” Paul Beere, a grain and livestock adviser at Prime Agricultural Consultants in Brookfield, Wisconsin, said in a telephone interview.
Hog futures for December settlement dropped 0.6 percent to 73.45 cents a pound at 10:07 a.m. on the Chicago Mercantile Exchange. The price rose 3.5 percent in the previous three sessions, partly on signs the demand for U.S. pork exports may increase.
Cattle futures for December delivery fell less than 0.1 percent to $1.29875 a pound on the CME.
Feeder-cattle futures for October settlement rose 0.8 percent to $1.4785 a pound.
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