Cattle Higher As Beef Demand Improves

CHICAGO, March – U.S. live cattle futures rose for a second straight day on Tuesday due to a pick up in demand for beef and expectations for a stronger cash market this week.

With the mild winter set to give way to what could be an unseasonably warm spring, the grilling season could get underway sooner than usual in the Midwest, adding to beef demand. 

But analysts cautioned that retail prices for beef at record highs, for a fifth straight month, and relatively high gasoline prices could combine to dampen demand. 

Gasoline prices were up 2 cents at $3.77 per gallon in the week ended March 9, but up 6.8 percent from the same week in 2011, a MasterCard weekly SpendingPulse report showed. 

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