Snow Forecast Boosts Cattle

Predictions of heavy snows on the Western plains that could disrupt feedlot operations helped drive cattle prices higher Friday on the Chicago Mercantile Exchange.

Blizzard-like conditions were expected in the nation’s principal feedlot areas in Kansas, Nebraska and the Texas Panhandle, said John Ginzel, analyst with Drexel Burnham Lambert in Chicago.

“It would not be conducive for cattle weight-gain rates and could prompt some very muddy conditions and set back cattle feeding,” Ginzel explained.

An interruption in the feedlots would serve to close the gap between a sluggish demand for beef and an abundant supply of cattle, Ginzel said.

“The principal factor in the market today is the weak demand,” he said. “The storm could be supportive for prices in the intermediate term.”

Frozen pork bellies rallied largely on technical considerations, Ginzel said. Lagging cash prices for pork, however, will likely weigh on the market in the longer term, Ginzel said.

Wheat and soybeans were higher and corn was lower on the Chicago Board of Trade.

Petroleum prices advanced on the New York Mercantile Exchange.