--Most hog futures extend decline on ideas that supplies may
expand
--Front-month hog contract supported by gains in cash
markets
--Cattle futures also mixed amid tight near-term supplies, cash
expectations
By Kelsey Gee
CHICAGO--U.S. hog futures are mostly lower early in the session
Thursday, as strong gains in the front-month contract amid rising
cash market prices are offset by concerns about expanding supplies
of available animals during the winter months and beyond.
October hog futures recently advanced 1.45 cents to $1.0255
cents a pound at the Chicago Mercantile Exchange. That contract has
rallied to the highest price in three weeks, ushering in
expectations for demand to further strengthen for wholesale pork
items.
Hogs for December are down 1.62 cents to 91.47 cents a pound.
February hog futures recently slid 2.95 cents, just above the
exchange-imposed daily limit, down to 88.02 cents a pound.
Prices processors have paid for hogs in the cash markets have
stabilized after falling over $30 per hundred pounds over the last
six weeks, as retailers have increased purchases of less expensive
hams, loins, and other products.
However, news that Zoetis Inc. received a conditional license
from the U.S. Department of Agriculture for a vaccine for a deadly
swine virus has weighed on expectations for prices packers may be
willing to pay this winter, if supplies of hogs increase.
Death loss due to the virus, which has spread to 30 states and
is expected to have killed millions of pigs, has helped push hog
futures to the highest price levels in history. With an additional
treatment available to producers this month, analysts expect fewer
pigs to be lost to disease as temperatures drop this fall,
conditions that veterinarians say aid the spread of disease.
Cattle futures are also mixed after climbing limit-up Wednesday.
Ideas that prices may rise in the cash markets for cattle amid
tight supplies are being offset by profit-taking in later
contracts. October live cattle have trimmed earlier gains, recently
rising 0.9 cent to $1.56325 a pound. December cattle are down 0.725
cent to $1.57275 a pound.
Cattle "numbers are tight enough that buyers are picking up
supplies hand-to-mouth," said Trey Warnock, an analyst with
Amarillo Brokerage in Texas, noting the cautious gains at
historically lofty prices for market-ready animals.
Most-active feeder-cattle futures for October recently slid 1.5
cent to $2.2027 a pound.
Write to Kelsey Gee at kelsey.gee@wsj.com
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