Cattle Gain as Feedlots Bought Fewer Last Month; Hogs Rose
Cattle gained, erasing earlier losses, after a U.S. government report showed feedlots bought fewer cattle in November compared with a year earlier as dry weather reduces the amount of feed available. Hogs also gained.
Feedlots purchased 1.923 million animals in November, down 5.6 percent from the same month a year earlier, Department of Agriculture data show. Feeders that lost about $118 a head on cattle sold in November are reducing inventories, meaning fewer slaughter-ready animals will be available in March or April.
Cattle futures for February delivery rose 0.1 percent to settle at $1.33575 a pound at 1 p.m. on the Chicago Mercantile Exchange. Prices, which touched a record $1.345 on Dec. 19, are up 10 percent this year as the U.S. herd shrunk.
Feeder-cattle futures for March settlement fell less than 0.1 percent to $1.54775 a pound on the CME.
Hog futures for February settlement gained 0.5 percent to 86.9 cents a pound in Chicago.
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