US hog futures steady after record highs

Hog futures were little changed, after climbing to the highest price in almost 13 years on speculation that US demand for pork will rise as animal supplies decline.

The sow herd totalled about 5.76 million animals on March 1, down 3.9% from a year earlier and the fewest on record, the USDA said. Pork demand is expected to rise as the economy recovers and warmer weather encourages people to grill more meat.

Hog futures for June settlement rose 0.025 cent to 85.075 cents a pound at 10:10 a.m. on the CME. Earlier, the commodity touched 85.85 cents, the highest level for a most-active contract since April 1997.

Meanwhile, cattle futures for June delivery fell 0.325 cent, or 0.3%, to 93.875 cents a pound on the CME. The price is up 8.9% this year, partly on increased demand for beef. Feeder-cattle futures for May settlement dropped 0.15 cent to US$1.13975 a pound.