Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Cattle Rally to Record on Tightening U.S. Beef Supply; Hogs Drop

Dec. 17 (Bloomberg) -- Cattle futures extended a rally to a record amid signs of shrinking supplies of U.S. beef. Hogs fell.

Beef production will drop 5 percent to 24.68 billion pounds (11.2 million metric tons) next year, the U.S. Department of Agriculture projected on Dec. 11. Ranchers culled herds as the worst drought since 1956 eroded crop yields, sending the price of corn, the main ingredient in feed, to a record in August. The U.S. herd as of July 1 was the smallest since at least 1973.

“There’s just optimism out there from the standpoint of the reduced supply,” Chad Henderson, the president of Prime Agricultural Consultants Inc. in Brookfield, Wisconsin, said in a telephone interview.

Cattle futures for February delivery climbed 0.7 percent to settle at $1.335 at 1 p.m. on the Chicago Mercantile Exchange, after reaching $1.337 a pound, the highest ever for the most-active contract. Prices are up 9.9 percent this year.

Wholesale beef increased 0.9 percent last week, the biggest gain since Nov. 23, USDA data show. Higher prices may start to erode consumer demand as U.S. economic growth slows, Henderson said.

Feeder-cattle futures for January settlement rose 0.8 percent to $1.5425 a pound on the CME.

Hog futures for February settlement dropped 0.8 percent to close at 84.75 cents a pound in Chicago. Prices are up 0.5 percent this year.

To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.