U.S. live futures rose Friday after U.S. Department of Agriculture reports showed supportive fundamentals and cash bids for live animals remained higher than a week ago.
Cattle for August delivery rose 1.2 cents, or 1%, to $1.1765 a pound in trading at the Chicago Mercantile Exchange. The CME October contract rose 0.92 cent, or 0.9%, to $1.2045 a pound. August feeder cattle futures rose 1.5 cents, or 1.1%, to $1.361 a pound.
Two USDA reports from Thursday pointed to tighter-than-expected corn supplies and growing foreign demand for U.S. meat. In response to higher prices, the USDA forecasts animal producers, rather than ethanol producers, will trim their corn buying.
If USDA is right, current feed use estimates imply further contraction in U.S. protein supplies for 2012,” said Steve Meyer and Len Steiner, who publish the CME’s Daily Livestock Report