Hog Futures Rise On Signs Of Declining Pork Supply, Cattle Drop

Hog futures rose the most in a week on signs that the supply of animals to U.S. meatpackers is shrinking as demand for pork climbs. Cattle fell.

Wholesale pork advanced to 79.82 cents a pound yesterday, the highest price since August 2008, government data show. As of last week, packers processed 30.3 million hogs this year, down 4.5 percent from a year earlier. Farmers slashed herds after high feed costs and the recession spurred two years of losses.

“The story of tightening hog supplies is still there,” said Lawrence Kane, a market adviser at Stewart-Peterson Group in Elmwood, Illinois. “It’s getting to be bratwurst season. That grinding meat is in short supply. And that’s part of what’s driving” wholesale prices, he said. “Grilling season is always good for the meat markets.”

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