Cattle futures shoot to record highs
Dow Jones Newswires 01/14/2014 @ 2:57pm
U.S. cattle futures rallied to new all-time highs Tuesday, following a surge in wholesale beef prices.
February live-cattle picked up 1.05 cents to $1.3765 a pound at the Chicago Mercantile Exchange, which surpassed the record high of $1.3682 established for the front-month contract last week. April live-cattle advanced 0.72 cent, or 0.5%, to $1.3780 a pound.
The cattle market has been underpinned by a historically tight supply of slaughter-ready animals and new records for wholesale beef prices. If retailers are willing to pay more for beef, processors have greater incentive to bid aggressively for cattle in the cash markets.
Wholesale choice-grade beef prices on Monday climbed $1.96 per hundred pounds to $216.94, according to the USDA, breaking the new records set Friday and Thursday. The previous record of $211.37 per hundred pounds was established May 23. Select-grade prices climbed $3.18 per hundred pounds to $214.76, also an all-time high. At midday, prices rose even further.
http://www.agriculture.com/markets/analysis/beef/cattle-futures-shoot-to-recd-highs_12-ar41137