Cattle Post Biggest Two-Day Drop in 10 Months on Beef Outlook

November 19, 2013 09:00 AM
 
Cattle Post Biggest Two-Day Drop in 10 Months on Beef Outlook

Nov. 19 (Bloomberg) -- Cattle futures fell, capping the biggest two-day drop in 10 months, on speculation that U.S. beef production is outpacing demand. Hog prices were unchanged.

Meatpackers have processed 240,000 cattle this week, up 4.3 percent from a week earlier, U.S. government data show. Wholesale beef has dropped 5.4 percent from a record in May.

Beef producers are struggling "to convince consumers to pay record prices," Lawrence Kane, a market adviser at Stewart- Peterson Group in Yates City, Illinois, said in a telephone interview. "We are also hitting holiday season. People buy a big turkey or big ham."

Cattle futures for February delivery fell 1.1 percent to close at $1.31675 a pound at 1 p.m. on the Chicago Mercantile Exchange. In two days, the price slumped 2.3 percent, the most since Jan. 17.

Today, wholesale beef dropped 0.3 percent to $1.9988 a pound. The all-time high on May 23 was $2.1137.

Feeder-cattle futures for January settlement declined 1.2 percent to $1.624 a pound. Earlier, the price touched $1.61825, the lowest for a most-active contract since Sept. 23.

Hog futures for February settlement closed at 89.9 cents a pound. The price has advanced 4.9 percent this year.

 

--Editors: Patrick McKiernan, Thomas Galatola

 

To contact the reporter on this story: Dalton Barker in Chicago at dbarker40@bloomberg.net

 

To contact the editor responsible for this story: Millie Munshi at mmunshi@bloomberg.net

Back to news


Million Dollar Wildfire Relief Challenge

Click here to learn more about the Million Dollar Wildfire Relief Challenge, and see how you can help in the rebuilding effort.


 

Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by Barchart.com
brought-by
Close