Livestock Prices Fall Again
Livestock and meat prices were lower Tuesday on the New York Mercantile Exchange, extending a price slide into its third session.
Live hogs and frozen pork bellies for delivery this month were under the most substantial pressure, with both commodities falling by their daily trading limits, 1.5 cents a pound in hogs and 2 cents in pork bellies.
Both were under pressure from the burdensome size of the slaughter, which has exceeded projections based on the Agriculture Department’s June hog and pig inventory report by 500,000 animals, said Chuck Levitt, a livestock analyst in Chicago with Shearson Lehman Bros.
He noted that cash prices for hogs on wholesale markets fell by 1 to 2 cents a pound, “and meat packers got all they wanted.”
Hogs for delivery in October were slightly higher, as the market had already fallen below prevailing cash quotes.
Cattle prices were under pressure from concern that demand is easing, Levitt said.
Unlike hogs, the October cattle contract was under pressure because it was trading at a premium to cash cattle prices.
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