Commodities Thursday, Aug. 6, 1987 : Pork Belly Contracts Up

Current-month pork belly contracts advanced strongly Thursday for the seventh consecutive session, while most other meat and livestock prices also rose in futures trading.

On other markets, prices were mostly lower for oil, grains and soybeans, and silver and platinum.

The contract for August delivery of pork bellies continued to lead trading in pork-related futures, rising 1.88 cents a pound.

Tom O’Hare, an analyst in New York with Smith Barney, Harris Upham & Co., said the supply of deliverable bellies is very low while the number of open contracts outstanding for the August delivery remains unusually large.

Pork prices also were buoyed by light sales of hogs at market, when a pickup had been expected because of the cooler weather in the Midwest.

Analysts said cattle futures rose in response to the light slaugher of animals while demand for beef is fairly good.

October and April live cattle futures set contract highs on the Chicago Mercantile Exchange, as did all feeder cattle deliveries.

Traders said feeder prices were boosted by the belief that replacement supplies for animals moving off the feedlots are tight.