The futures of Chicago Mercantile Exchange live cattle and feeder cattle increased to a lifetime of high cash prices and tight supply on Friday.
Traders said that the demand of a strong consumer for beef and compressed American supply has sent cash cattle prices.
“Futures have been operated by the cash market, which has horrified the ballistic vertical,” said Dennis Smith, a broker of Archer Financial Services.
Brokers stated that cash prices for fed cattle are at the top of $ 200 per CWT this week.
Analysts said that consumer demand remains flexible due to low unemployment numbers and strong equity markets, which made us more keen to burst shopkeepers on beef.
Smith said, “Demand is better than feeling anyone, and packers are competing against each other for the supply available to meet that demand.”
Analysts stated that the freezing of most of the American plains means that feedlots are carrying cattle on cattle before beating the cattle, while waiting for them to gain weight, the analysts said. He said that it already reduces tight cattle supply, he said. In cold weather, cattle weigh more slowly.
Most-active CME April Live Cattle Contract ended by 2.3 cents in 203.025 cents per pound. All living cattle contracts reached a lifetime high level for the third consecutive trading day.
CME March feeder cattle settled at 2.5 cents 276.575 cents per pound, a lifetime height with all contracts.
US Agriculture Department, in a report released after the market shutdown, said
Placement of cattle in feedlots
In December, 3% fell from last year. Analysts
The decline is partly due to the stagnation of the import of cattle from Mexico, the US said after blocking the shipment in November during the discovery of the new world screw insect in Mexico, Smith said. When the border opens again to the import of cattle, traders hope that the flow of cattle will still be slowed due to additional safety protocols.
In Lean Hog Futures, CME April Hogs increased by 1 percent at 88.2 cents per pound.
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