The prospect of reduced supplies prompted cattle futures to mark their sharpest gains in about 180 days on Monday, according to Bloomberg.
Feedlots in the U.S. purchased 0.5 percent less cattle last month as compared to one year prior, the U.S. Department of Agriculture stated late last week. Analysts, anticipating increases, were taken aback by the economic data.
The economic data released by the U.S. Department of Agriculture “should inject a real positive tone into the market,” analyst Dennis Smith with Archer Financial Services in Chicago told the news source on Monday. “The placements came in lower than expected.”
At 1:01 p.m. on Monday, cattle futures rose 1.95 percent, a 0.0255 cent lift to $1.333 per pound. Lean hog futures climbed 0.2 percent, a 0.0018 cent increase to 0.891 per pound. At 1:02 p.m. on Monday, feeder cattle futures surged 1.25 percent, a 0.0185 cent increase to $1.498 per pound.
The Cattle Network forecast cattle futures to surge on Monday, noting the monthly report issued by the U.S. Department of Agriculture.
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