Chicago cattle futures surged on Tuesday to sit just under highs. Hog contracts also made gains.
Most-traded October live cattle closed at 227.100 cents per pound, up 3.000 cents. December live cattle settled at 228.150 cents a pound, up 3.150 cents.
Most-active September feeder cattle contracts closed at 339.550 cents a pound, up 5.100 cents. October feeders settled at 337.825 cents per pound, up 5.425 cents.
Choice boxed beef settled at $369.94 per cwt, up $4.15. Select boxed beef climbed by $4.35 to $345.94 per cwt, the USDA reported.
On Monday, executives from U.S. meatpacker Tyson said during an earnings conference call that U.S. cattle supplies were still historically tight but that consumer demand for beef remained resilient despite high prices.
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Ranchers this summer slashed the nation’s cattle inventory to its lowest level since records began in 1973. A severe drought in recent years dried up pastures used for grazing, raising feeding costs, prompting ranchers to reduce their herds, and pushing beef prices to records.
Most-active October lean hog contracts closed at 92.800 cents per pound, up 1.900. December lean hogs settled at 85.175 cents a pound, up 1.725 cents.
The USDA reported pork carcass cutout value at $118.12 per cwt, up $0.33.
—With files from Reuters. Prices reported in U.S. dollars.
