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Hogs Climb on Falling Inventories; Wheat, Cotton Rise on Dollar Decline

November 23, 2009 at 23:14 by Vladimir Vyun

Hog futures jumped to a five-month high as declining U.S. pork inventories signaled that global demand for the meat may be growing. Despite extensive hog slaughter demand may rise occasionally and supplies may be not enough to meet it, analysts say. Pork inventories declined 1.5 percent from the previous year to 520.13 million pounds. February futures for hog settlement climbed $0.0165 (2.6 percent) to $0.66025 per pound by 11:11 on the Chicago Mercantile Exchange.

Wheat gained on expectation that a declining dollar will increase the demand for commodities as an inflation hedge and boost U.S. exports. Another reason for the rising price is concern that U.S. farmers will plant fewer winter wheat as rainfalls delayed the corn and soybeans harvests, lowering the amount of land available for wheat. March futures for wheat delivery gained $0.0975 (1.7 percent) to $5.905 per bushel at 11:46 on CBT.

Cotton reached a 16-month high after the weaker dollar spurred demand for the commodity. The declining dollar is pushing down the cost to overseas buyers for U.S. commodities. Holders of cotton are unwilling to deliver supplies against the December futures contract. March futures for cotton delivery added $0.0066 (0.9 percent) to $0.747 per pound as of 12:51 on ICE.

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