US hog futures fall as speculators may boost sales

US hog futures fell for the first time in four sessions on speculation that prices near the highest level in 13 years will spur sales by speculators; while cattle were little changed.

Hogs have jumped 17% in the past year earlier, reaching the highest price since May 1996 last week. Hedge funds and other large speculators held record net-long positions, or bets on rising prices, in hog futures as of April 13, government data show.

US regulators last week sued Goldman Sachs Group, one of Wall Street's biggest traders and commodity brokers, which may make some investors uneasy.

Hog futures for June settlement dropped 0.55 cent, or 0.6%, to 85.8 cents a pound at 12:27 p.m. on the CME.

Meanwhile, cattle futures for June delivery rose 0.05 cent to 94.55 cents a pound. Before today, futures were up 12% in the past year. Feeder-cattle futures for August settlement declined 0.375 cent, or 0.3%, to US$1.1565 a pound.

Earlier, cattle fell on speculation that feedlots will expand herds, after animal prices jumped this month and wholesale beef reached the highest level since 2008.

Steers for immediate delivery to slaughterhouses sold for 99.21 cents a pound April 16, up about 4.4% this month, while choice beef has gained 21% this year, USDA data show. The USDA may report April 23 that feedlots increased purchases of young cattle, or placements, by almost 10% in March from a year earlier, said Rich Nelson, director of research at Allendale Inc.

"Recent excitement in prices may be a big incentive to cattle feeders to start placing extra cattle," said Nelson.