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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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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