Chicago lean hog prices extended their slide for the fourth session, after a health warning about processed meat raised worries about the future of demand.
December lean hog futures are down 7.0% from last Wednesday, when the slide began.
Prices have only reached lower on one trading session since the start of April.
The World Health Organisation has added some types of meat to its list of cancer-causing substances, linking red meat and processed meat to colorectal cancer.
Analysts linked the drop in prices to concerns over the news.
“The market was minorly spooked by the cancer talk,” said Don Roose of US Commodities.
Mr Roose said that whatever the effect the news might have on consumers, it would affect sentiment among speculators.
“It can have a psychological effect,” Mr Roose told Agrimoney.com.
“When you have big hedge fund managers in the market, it is subjected to fears of that sort,” he said.
“Maybe it’s not from new selling, it’s from a lack of buying,”
Paragon Economics also downplayed the potential effect on demand.
“At this point it is uncertain as to what sort of demand impact the release of this report and the bombastic headlines that followed it will have on red meat consumption,” said the consulting group.
“The consumption effects will depend largely on how the nuanced message of this report will be packaged and delivered.”
Supplies to rise
Mr Roose also pointed out that a seasonal increase in supplies was anticipated.
“Seasonally what happens is supplies ramp up.”
“Numbers are going to pick up in the fall quarter,” he said.
And pig weights at slaughter are also set to rise seasonally.
“There’s a new crop of corn coming up, which will give an increase in quality, and the weather is cooler.
“That all adds up to increase in weight.”
December lean hog futures in Chicago were down 1.8% in morning deals, at 61.725 cents a pound.
(Source – http://www.agrimoney.com/news/hog-futures-fall-on-cancer-fears–8945.html)