Tags: cattle | futures | commodities | beef

Cattle Futures Hit Record on Strong Beef Market

Monday, 03 Oct 2011 05:54 PM

U.S. cattle futures closed at a record high on Monday and have increased for seven straight sessions in reaction to strong cash cattle and beef markets, traders said.

October cattle peaked at 123.100 cents per lb in Monday's pit trading, the highest ever for a lead contract and surpassing the previous high of 122.875 cents set in April.

Nonetheless, a stronger dollar's surge and lower the stock market, due to Greek's debt problems, limited cattle's gains and helped guide hog futures lower.

Deflated consumer confidence in the world economy, and the higher dollar, might dampen domestic and foreign meat demand, traders said.

By day's end CME live cattle were higher, buoyed by wholesale beef prices that floated up as retailers shopped for bargains at current prices. The government quoted the wholesale choice beef price Monday evening up $1.32 per cwt at $183.81 and select up 94 cents at $170.28.

Also, bullish traders foresee steady to $3 per cwt higher cash prices of $120 to $123 this week, the result of a multi-year drought in the U.S. southwest whittling down supplies.

"Bullish fundamentals overrode nervousness from the outside markets. Cash is the driving force and packers have prior meat commitments to make," said Don Roose, an analyst with U.S. Commodities.

October live cattle settled up 0.950 cent, or 0.78 percent, at 123.100 cents per lb. December ended up 0.675 cent, or 0.55 percent, at 123.325 cents.

 

HOGS DOWN BUT NOT OUT

Hog futures initially advanced on follow-through buying from Friday's gains, but later profit taking turned the market down. Higher cash hog prices and stable wholesale pork values cushioned the fall.

"Packers have enough money on hand to pay up for supplies, with wholesale pork prices as an incentive," a CME hog trader said.

The average price for hogs at the closely watched Iowa/southern Minnesota market late on Monday was up $1.25 at $91.35 per cwt.

Monday evening's USDA cash pork price was up 26 cents at $98.32 per cwt.

October hogs closed down 0.250 cent, or 0.27 percent, at 93.125 cents per lb. December dropped 1.000 cent, or 1.14 percent, to 86.800 cents.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Markets
U.S. cattle futures closed at a record high on Monday and have increased for seven straight sessions in reaction to strong cash cattle and beef markets, traders said. October cattle peaked at 123.100 cents per lb in Monday's pit trading, the highest ever for a lead...
cattle,futures,commodities,beef,
353
2011-54-03
Monday, 03 Oct 2011 05:54 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved