Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Cattle & Beef Advances Amid Higher Demand & Lower Supply

February 15, 2012 at 0:31 by Vladimir Vyun

Cattle prices jumped and feeder-cattle futures reached a record yesterday as there was a deficit of animal available to slaughter-houses in the United States, while demand for beef rose. Meatpackers have processed 3.6 million cattle this year, 5.4 percent less than in 2011. The USA exported 2.8 billion pounds (1.3 million metric tons) of the meat last year, 21 percent more than a year ago. Prices for wholesale beef grew 3.4 percent.

Lane Broadbent, a vice president at KIS Futures Inc., commented:

Packers are having to buy cattle on the sellers’ terms. Demand is still very good overseas and very solid domestically. You get increasing demand and tighter supplies, and that will mean higher-priced cattle.

April futures for delivery of cattle rose 0.9 percent to $1.2925 per pound on CME. Contract for delivery of Feeder-cattle in March advanced as much as 1 percent to $1.5625 per pound, while touching the record of $1.568 earlier. Wholesale beef settlement jumped to $1.8769.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply