Futures on cattle grew on Thursday amid signs of stabilization of cash prices in the US Middle West after a fall earlier this week.
By the end of CBOT trades at CME, August futures on cattle grew 0.55 cent and equaled USD 1.1162 per pound. October contract gained 0.7 cent (0.6%) and constituted 1.1615 dollars per pound. August futures on well-fed livestock became 0.42 cent (0.3%) more expensive and got equal to USD 1.358 per pound.
On Tuesday in Kansas cash prices for beef dropped down to USD 1.07 per pound after the US Agriculture Department announced increasing meat reserves. Meanwhile, the USA has been hit by a drought which pushes market demand for beef down and causes cattle losing weight. Last week several thousands of cows died in the US Middle West of high temperatures.
However, since Tuesday trades were rather calm which boosted expectations of more stable prices and further growth.
On Thursday the US Agriculture Department informed that wholesale prices for beef declined by 29 cent and constituted USD 175.44 dollars per a hundred of pounds.
Yet, in Nebraska the middle volume of trades for the price USD 1.75 per pound has been registered. On the whole, in this state cash prices has been traded at the last week levels. In Texas trades have been sluggish; there have been sales for USD 1.06-1.07 per pound which is a USD 1 less than last week.
