Sept. 25 (Bloomberg) -- Hog futures rose to a two-week high on concern that shrinking animal supplies will limit U.S. pork production. Cattle posted the longest rally in 10 months, while feeder cattle dropped from a record.
The U.S. hog herd may have shrunk 1 percent as of Sept. 1 to 67.463 million animals, from 68.172 million a year earlier, according to a Bloomberg News survey of 10 analysts. Wholesale pork has climbed 5.5 percent this month, according to U.S. Department of Agriculture data.
“We have lots of meat brokers saying they have meat sold out until next week,” Jason Golly, a vice president of risk management marketing at Lynch Livestock Inc. in Waucoma, Iowa, said in a telephone interview.
Hog futures for December settlement increased 0.6 percent to close at 88.6 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Earlier, the price reached 89 cents, the highest for a most-active contract since Sept. 6.
Pork stockpiles fell 7.8 percent at the end of August from a year earlier as slaughter rates slowed, the USDA said on Sept. 23.
Cattle futures for December delivery advanced less than 0.1 percent to $1.31275 a pound. Earlier, the price reached $1.3175, the highest since Feb. 8. The commodity gained for the sixth straight session, the longest rally since Nov. 23.
Feeder-cattle futures for November delivery dropped 0.4 percent to $1.6405 a pound. Earlier, the price reached an all- time high of $1.65.
--Editors: Patrick McKiernan, Millie Munshi