Futures Market News
Cattle futures drop amidst increasing supplies
Jan 24, 2011 01:03 PM
Indications of greater supplies of beef caused cattle futures to slip for the first time in 14 days as hog futures also dipped, Bloomberg reports.
December's dry pastureland influenced ranchers to sell young cattle, which increased 16 percent during the month. Prices last week notched a record amidst speculation that demand for meat exports from the U.S. will rise.
"The increase in placements doesn't present any supply shortage for the near term," David Kruse, president of CommStock Investments Inc. in Royal, Iowa, told Bloomberg.
Shortly after 1:30 p.m. on Monday, cattle futures were down 0.925 cents, a 0.82 percent reduction to $1.1175 per pound. At the same time, hog futures also were down 0.15 cents, a 0.17 percent reduction to $86.425 per pound.
Prior to Monday, hog futures for April delivery increased 19 percent during the past year.
Immediate-delivery steer averaged $1.0581 per pound on Monday through Thursday of last week, representing a 1.8 percent decrease from the same days one week prior.
Early last week, cattle futures notched $1.166, representing the highest value since the contract began trading in 1964.
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