Related News:
Cattle Futures Rise on Signs of Climbing U.S. Beef Exports; Hogs Advance
Cattle futures rose to a one-week high on signs that global demand for U.S. beef is increasing. Hogs gained the most in two weeks.
U.S. beef-export sales in the four weeks ended Aug. 26 rose 14 percent from a year earlier, the Department of Agriculture said today. Wholesale choice-beef prices have climbed 17 percent this year. The MSCI World Index of equities advanced for the second straight day, signaling an improving economic outlook.
“There’s been a lot of talk of exports and potential exports,” said Dick Quiter, an account executive at McFarland Commodities LLC in Chicago. “They’ve been a little better than people expected, and that’s added to a little of the support the market has shown.”
Cattle futures for October delivery rose 0.7 cent, or 0.7 percent, to close at 98.45 cents a pound at 1 p.m. on the Chicago Mercantile Exchange. Earlier, the price reached 98.925 cents, the highest level since Aug. 26. The most-active contract has climbed 14 percent this year as beef supplies declined and demand rebounded.
Feeder-cattle futures for October settlement rose 0.65 cent, or 0.6 percent, to $1.155 a pound.
Wholesale choice beef advanced 0.2 percent at midday to $1.6295 a pound, according to the USDA.
Livestock Speculators
Hedge funds and other large speculators may be increasing bets on a price increase amid signs that meat demand is recovering, said Elaine Johnson, an analyst at CattleHedging.com in Westminster, Colorado.
In the week ended Aug. 24, so-called net-long positions in cattle futures rose for a sixth straight week, according to the most-recent government data. Wagers on a hogs rally jumped 33 percent in the week.
Higher livestock prices today “may be no more complicated than a little fund buying,” Johnson said. “Some of the outside markets are higher, and the economy is looking a little better, depending on who you talk to.”
Hog futures for October settlement rose 1.475 cents, or 2 percent, to 76.425 cents a pound, the biggest gain since Aug. 18.
The October contract traded 6.6 cents below than the CME’s Lean Hogs Index, a gauge of spot-market prices. The wide spread may support futures, McFarland’s Quiter said.
To contact the reporter on this story: Whitney McFerron in Chicago at wmcferron1@bloomberg.net.
Rate These Stories
Rate this Page