Cattle futures rose on speculation that U.S. meat purchases will increase as the weather warms up and more consumers grill outdoors. Hog prices also climbed.
Wholesale beef rose 0.2 percent to $1.8989 a pound yesterday, the first increase in almost a week, U.S. Department of Agriculture data show. Meatpackers processed 122,000 cattle yesterday, up 5.2 percent from the previous week, government data show.
Prices are increasing on “the optimism that we’re getting closer to a timeframe that temperatures do start to warm up and better grilling and better demand,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview.
Cattle futures for June delivery advanced 0.4 percent to $1.203 a pound at 10:48 a.m. on the Chicago Mercantile Exchange. The price was down 9.4 percent this year through yesterday.
Hog futures for June settlement added 0.6 percent to 89.125 cents a pound on the CME. Through yesterday, prices gained 3.4 percent this year.
Feeder-cattle futures for August settlement slid less than 0.1 percent to $1.4635 a pound.
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