Cattle Gain on Outlook for Climbing U.S. Beef Demand; Hogs Rally
Cattle futures rose for the first time in four sessions on speculation that beef demand in the U.S. is climbing. Hog prices also increased.
Wholesale beef rose 0.4 percent to $1.9078 a pound yesterday, and prices are up 0.9 percent his month, heading for the third straight gain, U.S. Department of Agriculture data show. Temperatures are rising in the central Plains and upper Midwest, according to MDA Weather Services. More consumers tend to grill outdoors in warmer weather, boosting meat demand.
“Weather is supposed to improve dramatically late this week and into next, and this should be somewhat supportive throughout this week,” Troy Vetterkind, the owner of Vetterkind Cattle Brokerage LLC in Thorp, Wisconsin, said in an e-mailed report today. “Cattle are trading higher, and that could have more to do with the prospects of improving boxed beef and cash- fed cattle markets this week and next.”
Cattle futures for June delivery increased 0.4 percent to $1.2125 a pound at 10:07 a.m. on the Chicago Mercantile Exchange. Prices lost 0.8 percent in the previous three sessions.
Feeder-cattle futures for August settlement added 1.4 percent to $1.4805 a pound.
Hog futures for June settlement climbed 0.7 percent to 90.075 cents a pound on the CME. The commodity was up 4.3 percent in 2013 through yesterday.
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