Hog futures rose to a 10-month high on speculation that demand for U.S. pork will increase with beef costs close to a nine-year high. Cattle prices also gained.
Wholesale pork at 94.42 cents a pound is 55 percent less than beef at $2.0887 a pound, the latest U.S. Department of Agriculture data showed on May 24. A day earlier, beef reached $2.1137, the highest since at least January 2004.
“Pork has a lot of advantages just being the cheaper meat,” Christian Mayer, a market analyst at Northstar Commodity Investments in Minneapolis, said in a telephone interview.
Hog futures for July settlement climbed 0.6 percent to 93.85 cents a pound at 10:56 a.m. on the Chicago Mercantile Exchange. Earlier, the price reached 94 cents, the highest for a most-active contract since July 9.
Cattle futures for August delivery rose 0.2 percent to $1.19425 a pound.
Through May 24, hogs advanced 8.8 percent this year, and cattle dropped 9.9 percent.
Feeder-cattle futures for August settlement declined 0.2 percent to $1.442 a pound.
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