Cooler than usual weather sees US beef demand rise and futures gain
August live cattle finished 1.325 cents per lb higher at 152.950 cents, and October 0.925 cent higher at 155.250 cents.
Wholesale price for choice beef jumped $2.02 (€1.50) per hundredweight to $250.47 (€1.85) from Friday to Monday morning. Select beef climbed $1.69 (€1.25) to $244.34 (€181), according to the US Department of Agriculture.
“Unbelievable that demand stays strong,” said Oak Investment Group president Joe Ocrant. He pointed to continued tight cattle supplies at a time when numbers tend to build seasonally.
Cooler-than-usual weather is extending beef demand that usually tapers off as consumers turn to lighter meals during hot summer temperatures.
And, fewer cattle forced packers to cut back slaughter rates, making the product less available to retailers.
CME live cattle received more support from short-covering and futures’ discount to last week’s prices for market-ready or cash cattle.
CME hog August and October contracts closed lower in anticipation of weaker cash prices after packers bought all the hogs they need early this week.
