Feeder Cattle Futures

Feeder Cattle Futures

July 30th, 2014

Beef costs are poised to rise further as feeder-cattle futures climbed to cap the longest rally in 37 years amid mounting U.S. supply concerns.

Cattle inventories as of July 1 fell to the lowest for the date since records began in 1973, the U.S. Department of Agriculture data said last week. Gains in consumer spending helped the economy rebound more than forecast in the second quarter, according to government figures today. Retail ground beef and boneless sirloin-steak costs rose to all-time highs in June, Bureau of Labor Statistics data show.

“We’ve never had cattle supplies this tight before with this kind of beef demand,” Troy Vetterkind, the owner of Vetterkind Cattle Brokerage in Thorp, Wisconsin, said in a telephone interview. “At some point in time, we’re going to cool things off, but it doesn’t appear to be this week. It’s a historic thing that we’ll probably never see ever again.”

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March 1st, 2013

Cattle futures climbed to a three- week high on signs of increasing demand for U.S. beef and the outlook for tighter supplies. Hogs also rose.

Meatpackers processed 426,000 head of cattle in the first four days of this week, down 4.3 percent from a week earlier, U.S. Department of Agriculture data show. Steers averaged $1.26 a pound in the first three days of this week, up 2.6 percent from $1.2282 a week earlier, USDA data show.

“The combination of the cash market and the lower slaughter, that’s really the driving force” behind today’s rally, Christian Mayer, a market adviser at Northstar Commodity Investments Co., said in a telephone interview from Minneapolis.

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February 28th, 2013

Cattle futures rose, extending the longest rally in three months, on signs that supplies tightened after winter storms across the central U.S. disrupted animal shipments and spurred weight losses. Hogs also increased.

Wholesale beef rose 0.9 percent yesterday to $1.8557 a pound, a four-week high, the latest government figures showed. The second major storm in two weeks covered the southern Great Plains with more than 12 inches (30 centimeters) of snow. During cold weather, livestock use more energy to stay warm, leading to lower weight.

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November 12th, 2012

Cattle futures fell on signs of weak demand for U.S. beef. Hogs also dropped.

Wholesale beef touched $1.9187 a pound on Nov. 9, a four- week low, U.S. Department of Agriculture data show. Meatpackers processed 631,000 cattle last week, down 2.3 percent from a week earlier, USDA figures show. The volume of beef shipments in the nine months through September fell 12 percent from a year earlier, the U.S. Meat Export Federation said today.

“I’m not impressed with the beef fundamentals,” Dennis Smith, an analyst at Archer Financial Services, said in a telephone interview in Chicago. “It’s a poor time of year for beef demand going into Thanksgiving,” celebrated on Nov. 22 this year, he said.

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