July 13, 2010

CME hog futures fell to a one-month low and cattle halted a four-session advance on speculation that US meat consumption is declining.

Meatpacking plants last week slaughtered 1.72 million hogs, down 13% from prior week and 12% from a year earlier, USDA data show. Demand for pork and beef historically declines after the US Fourth of July holiday.

"This is not the time of year when you can get excited about demand for meat," said Dennis Smith, a senior account executive at Archer Financial Services Inc. in Chicago. "We're expecting a flat to lower cash market driving pork lower."

Hog futures for August settlement fell 0.575 cent, or 0.7%, to 79.45 cents a pound on the CME. Earlier, the price slipped to 79.3 cents, the lowest level since June 9. The price has gained 21% this year as producers culled herds to reduce supply.

Cattle futures for October delivery were unchanged at 91.4 cents a pound in Chicago. Prices gained 2.2% last week. Feeder-cattle futures for August delivery dropped 0.525 cent, or 0.5%, to US$1.12675 a pound.