Commodities Tuesday, Dec. 24, 1985 : Meat Futures Prices Gain

Meat and livestock futures prices advanced strongly on the Chicago Mercantile Exchange on Tuesday, responding to a government report showing 3% fewer hogs and pigs on the nation’s farms compared to a year ago.

Hog bellies closed 2 cents a pound higher, the limit for daily trading set by the exchange, and most contracts locked in at that price on the opening.

“The pig crop report was the basic bullish influence,” said Charlie Richardson, an analyst in Denver with Lind-Waldock. “Bellies were affected the most, partly because of their late sell-off Monday afternoon.”

Most live hog futures closed the limit 1 1/2 cents a pound higher and so did some contracts for live cattle and feeder cattle.

The Agriculture Department hog survey, released after trading Monday, indicated that hog producers are refraining from any major expansion plans.

Breeding swine were down 2% from a year earlier and farrowings during the December-May period are expected to show a slight increase, but during March-May they are forecast for “fractionally below” last season.