Cattle Futures Move Higher

Cattle futures advanced Friday in anticipation of government reports, which upon release after the close indicated that prices could go much higher next week.

One of the Agriculture Department reports showed that the number of cattle placed on feedlots during June was at the lowest level in 12 years, said Chuck Levitt, an analyst in Chicago with Shearson Lehman Bros.

“This will lead to higher prices on Monday,” he said, “although the report did not have the explosiveness that we had when we got the hogs and pigs report at the end of June.”

In other markets, crude oil slipped below $11 a barrel, weakened by a gloomy outlook for OPEC’s meeting next week when the 13-nation group tries again to agree to production controls. A series of pessimistic pronouncements came from ministers who will be attending the meeting of the Organization of Petroleum Exporting Countries.

“Few expect anything to come out of it,” said Peter Beutel, an analyst in New York with Elders Futures Inc.

The petroleum minister of the United Arab Emirates, Mana Said Oteiba, was reported as saying that there is no alternative to a price war until rival producers agree to reduce output.