Chicago Mercantile Exchange live cattle and lean hog futures rose to life-of-contract highs on Tuesday, lifted by investment fund buying linked to optimism that meat prices will continue to rise, traders said.
Chicago Mercantile Exchange lean hogs on Monday reached their highest level in almost a year as packers competed for supplies during the first full week of production after the New Year's holiday, said traders.
Chicago Mercantile Exchange lean hogs on Wednesday slid from a one-year top earlier in the session, rattled by fund selling and Canadian government concerns over NAFTA talks with the United States, said traders.
U.S. live cattle futures bounded to life-of-contract highs for the third straight session on Wednesday, rising on expectations that beef packers will continue paying higher prices in Plains cash markets.
Chicago Mercantile Exchange lean hog futures fell about 2 percent in a technical selloff on Tuesday, easing from an earlier two-month high in a reversal that could portend further declines, traders and analysts said.
Research supports fat as part of a healthy diet and consumers are demanding high-quality beef, and the beef industry has seen a rebound of grade because of increased emphasis on genetics, says Dale Woerner, Texas Tech.