Livestock, Meat Prices Mixed

Futures prices for livestock and meat were mixed Monday on the Chicago Mercantile Exchange and traders attributed the uncertain direction of the market to concern over impending government supply reports.

The Agriculture Department’s survey of hogs and pigs and its cold storage report--both released after the exchange closed Monday--were extremely supportive of prices, traders said.

The nation’s hog and pig population of 48.8 million was down 7% from previous year and was the smallest June 1 figure since 1975, according to government statistics.

“I’d call it an outrageously bullish report,” said Chuck Levitt, a livestock analyst in Chicago with Shearson Lehman Bros. “Traders were expecting a friendly report but nothing like this.”

“The liquidation since March 1 also means the breeding herd is getting smaller and smaller,” he said.

The breeding figure of 6.4 million was the smallest June 1 breeding herd on record, Levitt said. The cold storage report showed stocks of frozen pork bellies at 66.2 million pounds, down 2 million from the previous month. It was the first May decline of pork bellies from storage since 1975, said Levitt.