Indications of an abundant supply of pork in the U.S. prompted hog futures to slip, Bloomberg reports.
Iowa and Southern Minnesota produced slaughtered hogs that weighed 2.6 percent more for the week ending December 11 than one year prior, according to the Agriculture Department.
"There's still plenty of hogs," Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois, told Bloomberg. "We've gotten more pork per hog. That's put a little bit of pressure on the market."
Futures for hogs slipped 0.925 cents for a price of 75.2 cents per pound shortly after 1 p.m. on the Chicago Mercantile Exchange. That 1.2 percent drop represented the largest drop since Monday of last week, a particularly surprising fact when considering the price of hogs has climbed 15 percent thus far this year.
February delivery cattle futures slipped 0.625 cents to $1.039 per pound, 1.2 percent drop.
"Consumer demand for beef is a concern," David Kruse, the president of CommStock Investments Inc. in Royal, Iowa, told Bloomberg.
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