Hogs Rise To 1997 High, Cattle Gain On Outlook For Meat Demand

Hogs rose to the highest price in almost 13 years and cattle gained on
speculation that U.S. meat demand will improve as warmer weather encourages
consumers to grill outdoors.

Meatpackers slaughtered about 2.18 million hogs last week, up 0.7 percent from a
year earlier, while 637,000 cattle were killed, up 4.6 percent, U.S. Department
of Agriculture data show. Wholesale-pork prices are up 33 percent from a year
ago, and beef has gained 20 percent, according to the USDA.

Our seasonal demand is kicking in here, said Lane Broadbent, an analyst at KIS
Futures Trading in Oklahoma City. Our demand should improve in the next 30 to
45 days, which is why were seeing a run-up in prices.

Hog futures for June settlement rose 1.675 cents, or 2 percent, to 85.05 cents a
pound on the Chicago Mercantile Exchange, after touching 85.65 cents, the
highest level for a most-active contract since May 1997.

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