Hog prices rose for the first time in three sessions on speculation that warmer weather will boost U.S. grilling demand and meat purchases. Cattle futures settled unchanged.
U.S. meatpackers processed 836,000 hogs in the first two days of this week, up 1.5 percent from a year earlier, government data show. Temperatures are rising in the central Plains and upper Midwest, according to MDA Weather Services. More consumers tend to grill outdoors in warmer weather, boosting meat demand.
“One of the best factors for the market is the weather looks better,” Christian Mayer, a market adviser at Northstar Commodity Investments Co. in Minneapolis, said in a telephone interview. “The domestic demand has been suffering, and it’s going to give it a little shot in the arm at least from that standpoint.”
Hog futures for June settlement climbed 0.1 percent to close at 89.575 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. The commodity is up 4.5 percent in 2013.
Spot hogs rose 0.4 percent to 76.42 cents a pound yesterday, the first gain since April 16, U.S. Department of Agriculture data show.
Cattle futures for June delivery settled unchanged at $1.20825 a pound on the CME.
Feeder-cattle futures for August settlement added 1.5 percent to $1.48125 a pound.