Feeder-cattle futures rose to a record for the second straight day on speculation that demand from U.S. ranchers will increase as feed costs decline. Hogs dropped.
The price of corn, the main ingredient in livestock feed, slumped to a three-year low on the outlook for the biggest U.S. crop ever this year. The loss of animals from a blizzard in the Western Plains may also be boosting prices, according to Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois.
“Feeders will continue to respond to what corn does,” Kane said in a telephone interview. “I’m hearing some pretty heavy livestock losses in South Dakota.”
Feeder-cattle futures for November settlement rose 0.8 percent to $1.692 a pound at 11:19 a.m. on the Chicago Mercantile Exchange, after reaching a record $1.69725.
Feedlot operators typically buy 1-year-old cattle that weigh 500 pounds (227 kilograms) to 800 pounds, called feeders, which are fattened on corn until they weigh 1,300 pounds and are sold to meatpackers.
Cattle futures for December delivery increased 0.5 percent to $1.32775 a pound on the CME.
Hog futures for December settlement slipped 0.1 percent to 86.6 cents a pound.
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