Monday’s Commodities Roundup
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NEW YORK (Dow Jones News) _ Hog futures soared to nearly two-week highs Monday at the Chicago Mercantile Exchange, rocketing up the daily limit in response to Friday’s government supply report.
The U.S. Department of Agriculture, in its quarterly Hogs & Pigs report released after Friday’s session, revived the flagging hog futures market by reporting supplies below expected levels as of Sept. 1. According to the USDA, there were 58.6 million hogs on U.S. farms on that date, down 1 percent from a year earlier. Traders had expected a slight rise.
In addition, the USDA revised hog numbers in previous quarterly reports downward to reflect the lower-than-expected slaughters seen through most of the summer.
Nearby October hogs climbed the 2-cent daily limit to 60.6 cents a pound, the highest close since Sept. 18.
``These are big-time cuts,″ said Iowa consulting firm Professional Farmers of America, referring to the revisions. ``And that goes a long way toward explaining the shortfall in slaughter all summer.″
The report also showed that U.S. farmers continue to delay expanding their herd. The number of sows set aside for breeding purposes fell 1 percent from the previous year, the Agriculture Department said.
In other commodity markets:
_Arabica coffee futures fell to a 25-year low on the Coffee, Sugar & Cocoa Exchange on selling by speculators and producers. The December contract lost 0.90 cent to 47.40 cents a pound.
Market participants said Colombia was a noted seller, following the release last week of a government aid package that gave exporters some room to sell more aggressively at current market levels.
_Gasoline futures gained strength on the New York Mercantile Exchange, rising 77 points to 65.29 cents a gallon.
Dow Jones News Service