Chicago Mercantile Exchange live cattle contracts sharply declined on Thursday, as a result of European deflation and Argentina default worries, which had a negative affect on the entire stock market. According to Reuters, an analyst said the demand for U.S. goods, including already high-priced meats, could be crippled by the worldwide economic worries threatening consumer confidence.
Aaron Goertzen, an economist at BMO Capital Markets, reports that after adjusting for inflation, real cattle prices are at their all-time high since the early 1980s.
Goertzen said, "Farm prices for hogs averaged $85/cwt between April and June, up nearly 24 percent from the same period last year," said . "Meanwhile, cattle prices averaged $146/cwt during the same period, nearly 18 percent higher than last year," according to Farm Futures.
Consumer prices of beef and pork in the U.S. rose by 10.4 percent and 12 percent year-over-year in June, overshadowing the overall food inflation of 2.4 percent.
The U.S. Department of Agriculture reported that Thursday morning's choice wholesale beef price hit an all-time high of $264.52 per cwt, surpassing Wednesday's record. Select beef gained 54 cents to $261.37, reports Reuters.
August closed at 2.350 cents per lb lower at 220.675, while September and October finished 3.000 cents lower at 221.200 and 221.025 cents.
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