Commodities for Monday, Aug. 5, 1985 : Livestock, Meat Prices Surge

Livestock and meat prices posted another sharp rally Monday on the Chicago Mercantile Exchange, continuing an advance that began last week and ending, at least for the time being, a two-month decline in prices.

Improved demand and higher prices on cash wholesale markets were major factors supporting livestock prices, said Tom Morgan, a livestock analyst in Chicago with Heinold Commodities.

Prices of cattle, live hogs and frozen pork bellies had fallen to life-of-contract lows by the middle of last week, but demand from retailers began to surface at those levels and signals of improved wholesale movement of boxed beef prompted a rally in futures.

Morgan said analysts expect to see continued strong demand for boxed beef, a term for beef that has been butchered into popular cuts. He noted also that the weight of live animals being slaughtered in Omaha dropped by about 40 pounds last week, an indication that feedlots in the western and northern portions of the Corn Belt have gotten rid of surplus cattle.

Grain and soybean futures prices were lower at the close of trading on the Chicago Board of Trade.