Pork Bellies Up the Limit

Pork futures prices posted strong gains Wednesday, with some pork belly contracts up the limit for daily trading on the Chicago Mercantile Exchange.

On other markets, soybeans and grains declined sharply; precious metals were higher; and energy futures were mostly higher.

Pork futures closed near the highs of the day, traders said, when prices surged ahead on a report that a major hog processor ran out of fresh bellies and was forced to take supplies from freezer stocks.

The 2 cents-a-pound limit gains in belly futures helped hog contracts, as did smaller hog runs following a two-day increase in marketings.

While live cattle futures declined, contracts for feeder cattle surged to contract highs. Traders said lower corn futures and technical market factors motivated the feeder cattle market.

Weak beef carcass prices undermined live cattle futures, traders said.

Soybean futures prices suffered a sharp setback on the Chicago Board of Trade. Grain futures also fell.