Nov. 19 (Bloomberg) -- Cattle futures fell, capping the biggest two-day drop in 10 months, on speculation that U.S. beef production is outpacing demand. Hog prices were unchanged.
Meatpackers have processed 240,000 cattle this week, up 4.3 percent from a week earlier, U.S. government data show. Wholesale beef has dropped 5.4 percent from a record in May.
Beef producers are struggling "to convince consumers to pay record prices," Lawrence Kane, a market adviser at Stewart- Peterson Group in Yates City, Illinois, said in a telephone interview. "We are also hitting holiday season. People buy a big turkey or big ham."
Cattle futures for February delivery fell 1.1 percent to close at $1.31675 a pound at 1 p.m. on the Chicago Mercantile Exchange. In two days, the price slumped 2.3 percent, the most since Jan. 17.
Today, wholesale beef dropped 0.3 percent to $1.9988 a pound. The all-time high on May 23 was $2.1137.
Feeder-cattle futures for January settlement declined 1.2 percent to $1.624 a pound. Earlier, the price touched $1.61825, the lowest for a most-active contract since Sept. 23.
Hog futures for February settlement closed at 89.9 cents a pound. The price has advanced 4.9 percent this year.
--Editors: Patrick McKiernan, Thomas Galatola
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