US hog futures rise on signs of higher demand

Hog futures touched a five-week high as US pork prices rose, signalling demand for the meat may be outpacing the supply of animals to meatpackers.

Wholesale pork climbed 7.8% in the past two weeks to 73.39 cents a pound on February 26, government figures show. The US produced 1.81 billion pounds of pork in January, down 11% from a year earlier, the USDA has said.

Hog futures for April settlement rose 0.525 cent, or 0.7%, to 73.325 cents a pound at 10:10 a.m. on the Chicago Mercantile Exchange. Earlier, the most-active contract reached 73.575 cents, the highest price since January 21.

Pork-belly futures for May delivery surged the 3-cent daily trading limit on the CME, climbing 3.3% to 94.3 cents a pound. The price gained 11% in February, the most for a month since August.

Meanwhile, cattle futures for April delivery traded at 91.875 cents a pound, down 0.05 cent. Feeder-cattle futures for April settlement rose 0.9 cent, or 0.9%, to US$1.034 a pound.