Pig and beef futures markets at the Chicago Mercantile Exchange (CME) rose Friday as strong consumer demand for pork and beef pushed prices higher, Reuters reported, citing traders as sources.
Live cattle were boosted due to concern for shortages of supplies. Don Roose, president of his US Commodities of West Des Moines, Iowa, said: “On the supply side, these numbers continue to be tight in livestock. It’s the declining numbers and higher beef prices that are pulling us higher.”
The US Department of Agriculture reported that as of October 1, the amount of cattle fed was 99.0% of the previous year’s total. This was 99.1%, slightly below market expectations.
September placements accounted for his 96.0% of September 2021 placements. Analysts expected the report to show a ranking of 96.4%.
Marketing, as expected, was 104% of last year’s total.
December CME live cattle rose 0.75 cents to 152.425 cents a pound and set a new contract high of 152.5 cents during the session.
Spot Livestock contracts rose 0.7 cents in October to 150.475 cents per pound, just below the session high of 150.5 cents.
CME Forage Cattle closed 0.8 cents higher at 178.35 cents a pound in November.
December CME lean hog futures rose 2.1 cents to settle at 89.125 cents per pound.
Strength in the spot market has supported the hog futures market, he said.