Commodities for Monday, Aug. 19, 1985 : Hog Futures Lead Sell-Off

Live hog and frozen pork belly futures prices fell sharply Monday on the Chicago Mercantile Exchange and led a sell-off in livestock markets.

New low prices were set by hogs for delivery in October and December of this year and April and June of next year and pork bellies for delivery in February and March of next year. Several contracts fell by their daily trading limits of 1 1/2 cents a pound in hogs and 2 cents a pound in pork bellies, but most recovered slightly before the end of trading.

Pressure in the pork complex came primarily from cash wholesale prices, which were 50 cents to $2 a pound lower, said Robin Fuller, a livestock analyst with Agri Analysis.

Hog prices have been under pressure because of an unseasonally large slaughter, and Fuller noted that the slaughter last week was 9% greater than a year earlier.

Cash pork belly prices also were lower, she added.

Cattle prices were lower despite steady to higher prices on wholesale cash markets for live animals and beef carcasses.

The price action “indicates that the cattle were down because of the pork,” Fuller said.