Cattle Futures Lead Rally
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Cattle futures prices were sharply higher Wednesday, leading a rally in active trading on the livestock markets at the Chicago Mercantile Exchange.
Strength on cash markets for live cattle and boxed beef were behind the rally in cattle prices, said Tom Morgan, a livestock analyst with Heinold Commodities.
Morgan said boxed beef sales have pulled ahead of average this week but carcass values have lagged behind the other segments of the market.
Nevertheless, live cattle futures soared, pulling feeder cattle up as well.
Feeders--younger animals that need to be fattened for slaugher--advanced by the daily limit of 1.5 cents a pound in most contracts.
Morgan said some traders believe that the beef market will be considerably stronger next year, which boosted the feeder cattle contracts for delivery then.
In addition, abundant suplies of cheep feed grain are available, he said.
Cash hog prices were steady to higher and boosted live hog futures, Morgan said.
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