Hog futures rallied for the first time in three sessions on speculation that warmer weather will boost demand for U.S. pork as more consumers grill outdoors. Cattle prices were little changed.
Wholesale pork added 3.3 percent to $1.0432 a pound on June 14, the highest since Aug. 22, 2011, U.S. Department of Agriculture data show. Prices added 8.1 percent last week, the most in a year, USDA data show. Rains will be limited in the Midwest early this week and temperatures will be at or above normal for the next two weeks, according to an e-mailed report from Commodity Weather Group LLC in Bethesda, Maryland.
“You’re seeing kind of the closing end of holiday purchases” for the Fourth of July holiday, Lou Arens, a broker at PCI Advisory Services in Waucoma, Iowa, said in a telephone interview. “Now that we’ve finally gotten to where the weather is cooperating, you’re getting a little more demand from people finally getting out and able to grill.”
Hog futures for August settlement rose 0.2percent to 96.975 cents a pound at 10:07 a.m. on the Chicago Mercantile Exchange. The most-active contract was up 13 percent this year through June 14.
Independence Day on July 4 is the most-popular day for outdoor grilling, according to the Hearth, Patio and Barbecue Association.
Cattle futures for August delivery rose less than 0.1 percent to $1.1835 a pound on the CME.
Feeder-cattle futures for August settlement climbed 0.2 percent to $1.437 a pound.
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