Hog futures fell to a five-month low on speculation that a jump in pork prices will slow demand from U.S. consumers. Pork bellies, used to make bacon, extended a rally to a record. Cattle were little changed.
Hog futures fell for the fourth time in five sessions as pork prices plunged, signaling U.S. animal supplies may top consumer demand for meat. Pork bellies extended a rally to a record, and cattle were little changed.
Pork-belly futures jumped the maximum allowed by the Chicago Mercantile Exchange, touching a six-year high. Pork bellies for August delivery rose 3 cents, the CME’s daily limit, or 2.8 percent, to $1.095 a pound at 8:38 a.m., the highest price for a most-active contract since July 2004.
Pork-belly futures surged the maximum permitted by the Chicago Mercantile Exchange for the sixth straight session, extending the rally to a record high. Pork bellies for August delivery rose the CME’s 4.5-cent limit, or 3.7 percent, to $1.275 a pound as of 9:05 a.m.
Bacon lovers in the U.S. are paying record prices during the seasonal summer peak for consumption, and costs may keep rising through August because smaller hog herds led to an unprecedented plunge in meat inventories.