Pork market sizzles
Some “little piggies” might not make it to market as a devastating virus continues to spread among hog herds. Known as PEDV, the disease is killing baby pigs in at least 17 states nationwide.
The virus is not harmful to humans, nor is it transmissible through pork. But the disease-related deaths could cut significantly into next spring’s pork production with some states projecting losses near 2 percent.
Hog prices have been climbing over the last two weeks, gaining more than four cents per pound. Prices for near-term December hogs sat Friday at 90 cents per pound, while prices for hogs next June were as high as 99.5 cents, partially driven higher by concerns about limited supplies in the future.
This year’s cotton harvest is expected to be the smallest in four years, and the harvest pace is behind schedule.
Cotton futures fell to 10-month lows this week. Prices have been dropping because of weak foreign demand for cotton. Since the 1800s, the United States has been a major seller of cotton to the world, currently exporting three-quarters of its cotton crop and making it extremely dependent on foreign markets.
Globally, demand from the world’s largest consumer China has been weak, as that nation reportedly has a full year’s worth of cotton stockpiled already. India, the world’s second-largest cotton grower, is likely to boost the size of its cotton crop this year.
By Friday, cotton was trading for 79 cents per pound.
Gasoline spills lower
Gasoline futures continued to decline this week, reaching the lowest point in 16 months. Prices typically decline as winter approaches because people drive less, reducing demand for the fuel. Since late August, prices dropped nearly 40 cents per gallon, a decline of over 10 percent.
A quiet Atlantic hurricane season, rising domestic crude oil inventories and continued signs of stability in the Middle East have pulled prices for petroleum downward, which helped to depress gas prices for drivers as well.
By Friday, gasoline futures, which represent the price for the fuel without taxes or other fees, were trading for $2.57 per gallon.