Cattle, Hog Futures Advance as Dollar's Drop May Boost U.S. Meat Exports

By Whitney McFerron - Sep 24, 2010 9:43 AM CT

Cattle futures rose for a second straight day and hogs gained as the dollar dropped, boosting prospects for U.S. beef and pork exports.

The greenback fell to a seven-month low against a basket of six major currencies. Beef export sales in the week ended Sept. 16 were 41 percent higher than the previous four-week average, according to the U.S. Department of Agriculture. Pork exports this year through July were 5.6 percent higher than a year earlier, the most-recent USDA data show.

“Export demand continues to work in favor of beef, and the dollar can have a positive impact on that,” said David Kruse, the president of CommStock Investments Inc. in Royal, Iowa. “There seems to be good support in general in all commodities.”

Cattle futures for December delivery gained 0.375 cent, or 0.4 percent, to 98.625 cents a pound at 9:24 a.m. on the Chicago Mercantile Exchange. Before today, the most-active contract was up 14 percent this year, partly as beef demand recovered from the recession. Feeder-cattle futures for November settlement dropped 0.1 cent to $1.0975 a pound.

Hog futures for December settlement rose 0.6 cent, or 0.8 percent, to 76.625 cents a pound. As of yesterday, the most- active contract was up 16 percent this year.

Hogs also rose before a USDA inventory report, which may show shrinking U.S. sow supplies, Kruse said. The quarterly report will be released today after CME livestock markets close.

To contact the reporter on this story: Whitney McFerron in Chicago at wmcferron1@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Article from Bloomberg.com