Cattle Slide as Cold Weather May Slow Meat Demand; Hogs Climb
Cattle fell for a second straight day on speculation that cold weather across the central U.S. will curb meat demand for outdoor grilling. Hogs rose.
Winter storm warnings and advisories reached from Utah to Wisconsin. A storm system brought “very cold air” into the western Great Plains, and temperatures fell into the mid-teens to low 20s Fahrenheit across parts of southwestern Kansas, southeastern Colorado, western Oklahoma and northwestern Texas, according to MDA Weather Services. Consumers tend to grill outdoors when temperatures rise, increasing meat purchases.
“We just can’t seem to get the market in gear,” Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois, said in a telephone interview. “The colder weather has certainly put a damper on the psychology of the cattle market. People just haven’t gone outside and grilled yet.”
Cattle futures for June delivery dropped 0.4 percent to $1.2125 a pound at 9:54 a.m. on the Chicago Mercantile Exchange. Through yesterday, prices fell 8 percent in 2013.
Feeder-cattle futures for May settlement declined 0.8 percent to $1.435 a pound.
Hog futures for June settlement rose 0.4 percent to 90.2 cents a pound on the CME. Prices were down 4 percent in the 12 months through yesterday.
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