Commodities Monday, Dec. 8, 1986 : Hogs, Cattle Futures Fall

Hog futures prices declined Monday as farmers brought an abundance of animals to market to cash in on sharp increases in early morning prices at the terminals. Pork bellies and cattle futures also fell at the Chicago Mercantile Exchange.

On other markets, coffee futures were sharply lower; the grains were mostly higher while soybeans declined, and energy futures were mixed, with oil products lower.

Packers began the day paying higher prices at the terminals, ordinarily a good sign for the futures market, said Chuck Levitt, an analyst in Chicago with Shearson Lehman Bros.

“But the higher bids really dragged them (the farmers) out, there was a flush of hogs brought to market,” he said. “If you’re sitting outside Des Moines and you hear hogs are up $1 or $1.50, you ship your hogs.”

As a result of the abundance of hogs brought to market, packers were able to satisfy their needs and are expected to be less aggressive in buying on Tuesday, Levitt said.

Cattle futures suffered from sluggish retailer interest in beef because retailers, like many families, had leftovers from Thanksgiving, he added.