Cattle futures climb to 22-month high
August 19, 2010
by Meat&Poultry Staff
Cattle futures increased to $1 a lb., the highest price in 22 months, as rising U.S. beef prices signal growing demand for the meat. Feeder-cattle reached a three-month high, and hog futures also gained, according to Bloomberg.
U.S. Dept. of Agriculture data show wholesale beef prices have increased 5.1% since Aug. 5 and are the highest in more than two months. Industry observers are predicting that cattle futures will rise, by 57% in the past month to the highest level since May, according to the government.
Cattle futures for October delivery rose 2.05 cents, or 2.1%, to 99.52 cents a lb. 10:26 a.m. on the Chicago Mercantile Exchange (C.M.E.). Earlier, the price reached $1, the highest level for a most-active contract since Oct. 2, 2008. Before today, prices climbed 13% this year.
Wholesale beef as of yesterday was $1.58 a lb., the highest since June 8, U.S.D.A. data show.
Feeder-cattle futures for October settlement gained 1.45 cents, or 1.3%, to $1.16 a lb. on the C.M.E., after reaching $1.16, the highest level for a most-active contract since May 6.