11/9/2010 11:14:02 AM
cerious22
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Posts: 8
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Hog prices fell to a 10-month low as heavier animals and slackening U.S. demand signaled increased supplies of pork. Cattle futures dropped, extending the longest slump since August.
Hog carcasses averaged more than 209 pounds (94.8 kilograms) on Oct. 28, the heaviest since at least 2002, according U.S. Department of Agriculture data. The price of wholesale pork has dropped 24 percent from this year's high on Aug. 24, slumping for six straight weeks.
"Supply-side fundamentals" are driving prices lower, said David Kruse, the president of CommStock Investments Inc. in Royal, Iowa. "Fantastic gains" in carcass weights occurred partly because of the better quality of livestock feed, compared with last year, he said.
Hog futures for December settlement fell 1 cent, or 1.5 percent, to settle at 65.2 cents a pound at 1:04 p.m. on the Chicago Mercantile Exchange. Earlier, the price touched 65.15 cents, the lowest level for a most-active contract since Dec. 31, 2009. In October, futures tumbled 12 percent, the most in two years. Hogs have declined 0.6 percent in 2010.
On Oct. 29, the price of animals for immediate delivery to slaughterhouses fell 0.9 percent to 58.83 cents a pound, the lowest level since Dec. 3, 2009, USDA data show.
Earlier today, hog futures climbed as much as 0.5 percent on prospects for increased demand after prices slumped.
"There's been very good pork demand at these lower prices," Kruse said. "Both the consumer and retailer are getting a good deal."
Cattle futures for December delivery fell 0.675 cent, or 0.7 percent, to settle at 98.15 cents a pound on the CME. The price dropped for the sixth straight session, the longest slump since late August. Earlier, futures touched 97.95, the lowest level for a most-active contract since Oct. 8. The commodity has jumped 14 percent this year.
Feeder-cattle futures for January settlement declined 0.2 cent, or 0.2 percent, to $1.106 a pound.
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