Conjecture about meat processors in the U.S. purchasing more supplies after prices fell on Tuesday prompted cattle futures to increase for the first time in nine sessions, Bloomberg reports.
The rising prices arrive in time for Memorial Day Weekend. The holiday marks the kick-off of the summer season as well as the beginning of increased numbers of outdoor barbecues.
"Wholesale prices have dropped down low enough to where the retailer is looking for supplies," Lawrence Kane, an Illinois-based market adviser at Stewart-Peterson Group, told the news service. "At these prices, demand has probably picked up."
Cattle futures closed Wednesday up 1.28 percent, a 0.01325 cent per pound climb to $1.05225 per pound. Hog futures also increased, a 0.55 percent rise of 0.00475 cents to 0.874 per pound.
"As much as anything, we’re getting a good rebound after the damage that was done," he said. "Technically, we’re oversold and product is moving, but moving slowly, at these prices. Overall, the meat complex has been battered pretty heavily."
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