Bloomberg News

Cattle Gain on Signs of Increasing Animal Demand; Hogs Climb

May 06, 2013

Cattle futures climbed on speculation that meatpackers are increasing purchases of animals to meet rising beef demand. Hogs rose.

Last week, wholesale beef jumped 4.6 percent to $2.0168 a pound, the highest since at least January 2004, U.S. Department of Agriculture data show. Steers averaged $1.2902 a pound in the first four days of last week, 1.4 percent higher from the previous week. The number of cattle available for slaughter may be shrinking, said Lane Broadbent, a vice president at KIS Futures Inc. in Oklahoma City.

“Some packers are going to be aggressively trying to buy,” Broadbent said in a telephone interview. “They’re seeing more demand, and they’re making money on killing cattle.”

Cattle futures for June delivery rose 0.7 percent to $1.22625 a pound at 9:52 a.m. on the Chicago Mercantile Exchange. Through May 3, the price climbed 5.1 percent in the past 12 months.

Feeder-cattle futures for August settlement increased 0.6 percent to $1.48425 a pound.

Hog futures for June settlement rose 0.1 percent to 92.275 cents a pound. Through May 3, the price climbed 7.5 percent this year.

To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.


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