Cattle Prices Heading to 3 Week Highs
USAgNet - 04/13/2017
U.S. live cattle futures jumped to a 2-1/2 week peak on Tuesday while lean hogs were mostly higher on support from investment fund buying linked to big gains in wholesale beef prices, traders and analysts said.
According to Reuters, most-active Chicago Mercantile Exchange June live cattle futures gained for the fifth straight session, settling up 1.400 cents at 113.700 cents per pound. April live cattle climbed 2.150 cents to 123.250 cents.
Cattle prices surged at midday after the U.S. Department of Agriculture showed choice-grade beef up $2.06 to $209.52 per cwt. Gains in prices for the meat stoked optimism for more aggressive buying in cash cattle markets in the U.S. Plains.
News this week that U.S. trade negotiators were seeking to hammer out deals to resume beef exports to China also provided a bullish undercurrent to the cattle market, even if it could take months for China to resume beef imports that have been effectively
halted since 2003.