Lean hog futures

Hog futures gain

June 17th, 2013

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.

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Hogs Rally to Highest Since July

On May 30, 2013, in Hog futures trading news report, by Infinity Trading
lean hog futures

Hog futures rally

May 30th, 2013

Hog futures rose to the highest since July on speculation that U.S. pork exports to China, the world’s biggest consumer, will gain as Shuanghui International Holdings Ltd. takes over Smithfield Foods Inc. Cattle fell.

Closely held Shuanghui announced yesterday that it agreed to acquire the Smithfield, Virginia-based U.S. producer for about $4.72 billion. Shipments to Asian country this year would total 326 million pounds (148,000 metric tons) if the deal is completed, or 9.8 percent more than an earlier forecast, according to Brett Stuart, the chief executive officer of meat researcher Global AgriTrends.

“Meat is continuing to move,” Jason Golly, a vice president of risk-management marketing at Lynch Livestock Inc., said in a telephone interview. “There’s just great demand.”

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April 12th, 2013

Hog futures fell, heading for the second straight weekly loss, on signs that cool weather across the U.S. is lowering demand for pork. Cattle advanced.

The forecast has turned cooler across the eastern and southern U.S. over the next 11 to 15 days, and a return to warmth “will be slower to evolve,” according to an e-mailed report from MDA Weather Services today. Meat purchases tend to increase when consumers grill outdoors during warmer weather.

“Our domestic demand is really holding us back,” Christian Mayer, a market adviser at Northstar Commodity Investments Co. in Minneapolis, said in a telephone interview. “The weather is what the weather is.”

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April 1st, 2013

Hog futures headed for the biggest drop in almost two weeks after a government report showed the U.S. herd increased more than analysts expected, indicating more pork supplies. Cattle prices also declined.

The hog herd totaled 65.911 million on March 1, up 1.5 percent from 64.937 million a year earlier, the U.S. Department of Agriculture said in a report released after the close of Chicago futures trading on March 28. Analysts surveyed by Bloomberg had projected a 0.8 percent increase.

“There’s a little bit larger supplies than everybody’s expecting,” Jason Golly, a vice president of risk-management marketing at Lynch Livestock Inc. in Waucoma, Iowa, said in a telephone interview.

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September 6th, 2012

Lean-hog futures fell to fresh 20-month lows Thursday as traders continue to react to signs of overwhelming pork and hog supplies pushed into markets by the effects of drought.

Hog contracts for October fell 2.5% to 71.75 cents a pound at the Chicago Mercantile Exchange, the latest 20-month low for the spot contract, or soonest-expiring futures. December hogs lost 1.4% to settle at 70.90 cents a pound. Spot contracts last hit a 20-month low two weeks ago.

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May 1st, 2012

Commodity Investing: The heaviest and most numerous U.S. pig population on record and rebounding Chinese output are creating a surplus that is poised to halt a four-year rally in prices.

U.S. farmers will raise 117.1 million pigs this year, the most in at least a half century, as world pork output gains 2.7 percent to an all-time high of 104.4 million metric tons, U.S. Department of Agriculture estimates show. China may produce 690 million hogs, the most since at least 1976. Prices may drop 10 percent to 77.75 cents a pound in Chicago by Dec. 31, according to the median of 10 analyst estimates compiled by Bloomberg.

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