Hog futures rose to a four-month high on signs of a rebound in demand for U.S. pork and tighter supply. Cattle prices advanced.
Wholesale pork rose on Nov. 16 for the first time in six sessions, after dropping to a six-week low a day earlier, according to the U.S. Department of Agriculture. Meat plants slaughtered 1.6 percent fewer hogs last week than the previous week, while carcass weights in the Iowa and southern Minnesota region fell 0.7 percent from a year earlier to 272.6 pounds (123.7 kilograms) in the week ended Nov. 10, USDA data show.
“There is strong wholesale hog value,” Jason Roose, an analyst at U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “Even though the hurricane in the East Coast had weakened demand, we’re still seeing packers look for meat to put in cold storage.”
Hog futures for February settlement climbed 1.1 percent to close at 87.425 cents a pound at 1 p.m. on the Chicago Mercantile Exchange, after reaching 87.875 cents, the highest for a most-active contract since July 9.
Cattle futures for February delivery gained 0.1 percent to $1.3015 a pound on the CME, rising for the third straight session. Feeder-cattle futures for January settlement increased 0.3 percent to $1.46 a pound.
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