Livestock, Meat Prices Fall

Livestock and meat prices fell sharply Friday on the Chicago Mercantile Exchange.

Chuck Levitt, a livestock analyst in Chicago with Shearson Lehman Bros., said the joint congressional conference committee was discussing a provision in the farm bill that could put more than 1 million dairy cows on the slaughter market next spring to reduce the excess production of dairy products. Such a liquidation would have a drastic effect on beef prices, he added.

Cattle prices also came under pressure from a lack of demand from retailers, who took care of their post-Thanksgiving needs prior to the holiday, Levitt said.

In addition, retailers are turning now to traditional holiday fare of turkeys, hams and pork roasts, he added.

The weakness in the cattle market spilled over into the hog and pork belly markets as well, Levitt said. He added that the slaughter of hogs has been heavy and that supplies of pork and pork bellies are plentiful.

Copper prices continued a strong rally on the Commodity Exchange in New York, while precious metals were slightly lower in lethargic trading.