Hog futures on the Chicago Mercantile Exchange gained more than 2 percent on Tuesday. According to Reuters, traders said futures were lifted by the increase in wholesale pork values and cash price optimism. October settled 2.700 cents per pound higher at 105.775 cents while December was up 2.200 cents at 98.250 cents. The U.S. Department of Agriculture reported that wholesale pork prices climbed $1.54 per hundredweight from Monday to $105.08.
Brian Hoops, president of brokerage Midwest Market Solutions in Springfield, Mo. said, "There's enough demand on an export basis to keep beef moving, which has led people to expect higher prices will be paid for cattle this week," according to NASDAQ.
CME's live cattle and hog markets fund trading shifted October long positions into deferred contracts through a process by followers of the Standard & Poor's Goldman Sachs Commodity Index called the "roll," reports Reuters.
U.S. exports of red meats declined in July, according to the USDA, for the first year- over-year drop in volume for both beef and pork in 2014. As wholesale prices climbed to all-time records due to supply constraints from drought and disease, July beef exports dropped 15 percent to 101.8 metric tons. Pork pork shipments declined 3 percent to 173.3 metric tons, according to NASDAQ.
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