Conjecture that the rising price of beef would hurt consumer demand for meat products helped push the price of cattle futures down from a 27-month high, Bloomberg reports.
The prices for wholesale choice-beef rose on Tuesday to their highest levels since late May. The price for immediate-delivery steers was 26 percent higher as compared to last year's figures. Thus far this year, prices for beef and cattle futures have increased 19 and 21 percent, respectively.
"We may have run out of buyers at the retail level, not just the futures level," Doug Harper, an analyst at Richard A. Brock & Associates in Milwaukee, told Bloomberg.
Processors also might be compelled to decrease the amount of animals they purchase as the price of hog futures for February delivery increased 0.1 percent to 75.325 cents a pound on the Chicago Mercantile Exchange.
"Part of the other thing that’s bringing the consumer back to pork is the price of beef," Lawrence Kane, a market adviser at Stewart-Peterson Group in Yates City, Illinois, told Bloomberg. "Pork and poultry both look like a better buy than beef does right now."
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