Commodities for Thursday, June 6, 1985 : Pork Bellies Sharply Higher
Frozen pork bellies were sharply higher Thursday on the Chicago Mercantile Exchange, leading a rally throughout the livestock markets.
Analysts said pork bellies were supported by reports of higher prices being paid on wholesale cash markets.
Bellies for delivery next year advanced by the daily limit of 2 cents a pound.
Robert Saathoff, director of commodity research in New York with Prudential-Bache Securities, said the strength on cash markets the past two days supported prices.
Saathoff said bellies typically rally in June and July, and a report from the exchange on the amount of bellies in storage was helpful as well.
The rally in pork bellies also encouraged buying in cattle and hogs, analysts said.
Sales of live hogs on country markets were light the past two days, but the weights of animals remained heavy, an indication that supplies are ample, said Pat Stern, a livestock analyst in Stamford, Conn., with Louis Dreyfus Corp.