Cattle futures rose to a one-month high and hogs gained on speculation that demand for U.S. meat will increase as the dollar drops and equities climb.
The dollar sank to an eight-week low against a basket of six major currencies, increasing the appeal of U.S. beef and pork exports. The Standard & Poor’s 500 Index rose as much as 1.9 percent, before paring gains. Wholesale choice beef prices climbed to a four-week high at midday and pork rose for two straight days last week, government data show.
“A lot of the strength we’re seeing in cattle, and to some extent the hogs, is being derived from the gains we’ve seen in the equity markets and weakness in the U.S. dollar,” said Dan Vaught, the owner of Vaught Futures Insights in Altus, Arkansas. “It’s based on ideas of improving global economic demand.”
Cattle futures for August delivery rose 0.325 cent, or 0.4 percent, to 89.8 cents a pound on the Chicago Mercantile Exchange. Earlier, the price touched 90.85 cents, the highest level for a most-active contract since June 3. Feeder-cattle futures for August settlement advanced 0.85 cent, or 0.8 percent, to $1.13525 a pound.
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