Worries about cattle supplies slipping later this year helped push cattle futures to a four week high on Friday, Bloomberg reports.
This past May, 1.81 million head of cattle was purchased, which represents an 11 percent reduction from May 2010 when 2.03 million were bought, according to the U.S. Agriculture Department. Once regular trading closed, the price of cattle futures notched $1.10425 per pound, which is the top price for the most active contract since mid May.
"Movement of beef has really been good this week," said Mark Schultz, the chief analyst at Northstar Commodity Investment Co. in Minneapolis. "It might be sign of better things to come down the road."
At 2:53 p.m. on Friday, cattle futures gained 2.2 percent, a .02375 cent climb to $1.110225 per pound.
Hog futures, which are having a productive week and are up about 15 percent during the past 12 months, slipped on Friday. At 2:51 p.m., hog futures were down 0.45 percent, a .00425 drop to 94.8 cents per pound.
Reuters reports cattle futures' weekly gain was about 6.5 percent, representing the largest since 2008.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.