000631 Hogs Fall As Pork Demand SlowsJune 14, 2000Washington - Waning demand for pork products that couldn't be supplied fast enough just a few weeks ago sent prices for lean hogs and pork bellies sharply lower this week on the Chicago Mercantile Exchange. In other commodity markets, sugar jumped to a new 17-month high and palladium hit an 11-week high. A suddenly sluggish retail market for pork products prompted the latest selloff of pork futures at the Chicago Merc. Lean hogs for July delivery fell 1.15 cent to 67.90 cents a pound while July frozen pork bellies fell 1.98 cent to 85.72 cents a pound, a two-week low. Analyst Dave Maher said the decline was the result of a combination of slow demand and oversupply. In addition, pork may be losing out to beef in June, which is traditionally a good month for beef products as summer kicks off. “I think we priced ourselves out,” said Maher, who heads Dave Maher and Associates in Ely, Iowa. “Up until about two weeks ago we had fast food chains promoting bacon and it was euphoria all over the place. All of a sudden it was over.” Fast-food restaurants, he said, are still using bacon heavily in sandwiches. “But for some reason - I don't know if it's that the consumer got tired of it or what - it's slowed down.” Sugar extended its rally and at one point was up 3% for the day at 8.78 cents a pound - the highest since January 1999. Prices jumped on news that Brazil's crop is smaller than expected and the world surplus will decline in 2000-01. July sugar settled up .23 cent at 8.72 cents a pound on the New York Coffee, Sugar and Cocoa Exchange.
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