(Benjamin Parkin – Wall Street Journal)
Hog futures jumped more than 4% on Tuesday, extending a recent rally as traders bet the market was reaching a seasonal low.
Both cash prices for slaughter-ready hogs and wholesale pork prices have steadied recently after weeks of heavy losses, which dragged futures lower. Cash prices rose 87 cents to $48.61 per 100 pounds on Monday while pork prices rose 34 cents to $73.12 per 100 pounds on Tuesday.
Hog futures started to rise last week after a U.S. Department of Agriculture report showed that the national hog-and-pig herd grew in line with expectations, albeit to a record. That report suggested that meatpackers would have an ample number of hogs with which to produce pork, analysts say, but traders are betting that export demand will be strong enough to absorb the extra supply. Click here to read more.