Futures on cattle grew on Friday and hit their all-time highs amid subsistent corn uprise which exacerbated concerns over decrease in beef supplies. Futures closed on uptrend for the 5th trading session in a row.
By the end of CME trades April futures on cattle gained 0.52 cent (0.43%) and reached 1.2207 US dollars per pound. April futures on well-fed stock grew by 0.30 cent (0.22%) and constituted 1.3810 US dollars per pound. May CFD increased by 0.02 cent up to 1.3940 US dollars per pound.
The beef market was supported on Friday by rising corn prices which has been caused by concerns over possible reduction of the reserves. Futures on cattle are rising in price when corn prices are growing since it has negative impact on cattle production.
Additionally, many market participants expect cash prices to increase this week which is to support futures. The market was hit by rumours of Japan keeping on importing American beef in the context of a growing possibility of nuclear pollution caused by Fukushima accident. They were proven by the information that radiation was found in US food, milk particularly.
The market was supported by the US stock market dynamics amid promising data on the labour market: the unemployment rate showed another decline. It caused the expectations of further economic growth to intensify which is likely to lead to increase in demand for beef.
