Cattle futures rose to a five-month high on increased demand as retailers buy meat for Labor Day, the last U.S. holiday of the year that is warm enough to encourage outdoor grilling. Hog prices also climbed.
Wholesale beef has climbed to the highest in almost four weeks, government data showed at midday. Labor Day, which falls on Sept. 2, is the third-most popular day for barbecuing in the U.S., according to the Hearth, Patio and Barbecue Association.
“Labor Day buying is moving the market higher,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview.
Cattle futures for October delivery added 0.5 percent to settle at $1.28075 a pound at 2 p.m. on the Chicago Mercantile Exchange, after reaching $1.2855, the highest for a most-active contract since March 13.
Feeder-cattle futures for September settlement advanced 0.4 percent to $1.577 a pound.
Hog futures for October settlement increased 0.4 percent to close at 86.525 cents a pound on the CME, the second straight gain.