Oct. 23 (Bloomberg) -- Hog futures declined for the fourth session in five on signs of increasing U.S. pork output as cheap feed leads to bigger animals at slaughter. Cattle fell.
Meat processors slaughtered 865,000 animals this week, up 0.2 percent from a year earlier, and animals weighed 2.2 percent more on average, U.S. Department of agriculture data show. The price of corn, the main ingredient in feed, plunged 41 percent in the past year as the government forecast a record U.S. crop.
“We are going to see a lot of hogs in November and December,” and low feed costs will encourage producers to expand their herds, Dennis Smith, a senior account executive at Archer Financial Services Inc. in Chicago, said in a telephone interview.
Hog futures for December settlement declined 0.5 percent to close at 88.15 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices are up 13 percent from a year earlier.
Cattle futures for December delivery slid 0.2 percent to $1.3275 a pound on the CME. Wholesale-beef prices are up 7.7 percent since the end of July and today reached the highest in four months.
Feeder-cattle futures for January settlement fell 0.3 percent to $1.67575 a pound.
--Editors: Steve Stroth, Patrick McKiernan