Heightened demand for U.S. beef pushed up cattle futures on Thursday while hog futures also rose, Bloomberg reports.
During the month leading to July 14, sales for the export of beef increased 51 percent as compared to the same period one year earlier, according to data from the U.S. government. Japan purchased nearly 9.2 million pounds. In the first five months of 2011, exporters sent 1.09 billion pounds of beef from the U.S., 27 percent more than the same period during 2010.
Information regarding exports was "good news for the market," senior account executive Dennis Smith of Archer Financial Services told the news service. "We were hearing that the export business was going really well."
At 2:48 p.m. on Thursday, cattle futures rose 0.22 percent, a .0025 cent rise to $1.1555 per pound. At 2:57 p.m., hog futures increased 0.36 percent, a .00325 cent lift to .90725 cents per pound.
But the U.S. inventory of cattle and calves livestock is down by about 1.4 percent from the year prior, CattleNetwork.com reports, citing information from Dow Jones Newswires. On July 1, the U.S. had 99.69 million head.
Risk Disclosure
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.
