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Cattle futures rose on speculation that U.S. beef demand will rebound. Hog prices also advanced.
Wholesale beef last week slumped 3.1 percent, the fifth straight decline and the longest slump since May, U.S. Department of Agriculture data show. Some retailers stopped selling items with lean finely textured beef, also known as “pink slime.” The product is made of beef trim and treated with ammonium hydroxide to kill pathogens.
“The industry is thinking we’ve all the bad news behind us,” Lane Broadbent, a vice president at KIS Futures Inc. in Oklahoma City, said in a telephone interview. “They think our demand is going to come back.”
Cattle futures for June delivery advanced 0.2 percent to $1.161 a pound at 10:57 a.m. on the Chicago Mercantile Exchange. Before today, the commodity dropped 4.6 percent this year.
The USDA has repeated that lean finely textured beef is safe. Several fast-food chains, including McDonald’s Corp., have stopped using the product.
“Consumers are not going to stop eating ground beef,” Dennis Smith, a senior account executive at Archer Financial Services Inc. in Chicago, said in a telephone interview.
Feeder-cattle futures for August settlement climbed 0.2 percent to $1.51275 a pound.
Hog futures for June settlement rose 0.1 percent to 93.6 cents a pound. Before today, the commodity climbed 11 percent this year.
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