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.
Without added unemployment benefits, 35% of American consumers are likely to buy less meat. Yet, double-digit gains in both volume and dollar sales were seen for retail meat departments in the first week of August.
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.
Producers of beef and pork have been discouraged about recent low prices as cash prices have dropped sharply this year. According to a Purdue University Extension economist, spring finished cattle price highs were near