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.
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