Livestock Futures Advance

Livestock and meat futures prices advanced strongly Wednesday because of a higher cash market.

The cattle delivery for October set a new contract high at the Chicago Mercantile Exchange and pork prices exhibited good follow-through buying from the previous session’s limit-up moves.

On some other markets, energy futures were higher; grain and soybean futures were lower; and precious metals declined.

Cash cattle was selling for as high as $63.75 per hundredweight and there was talk of some animals going for $64, said Philip Stanley, an analyst in Chicago with Thomson McKinnon Securities Inc.

“The trend is up in cash cattle, and it’s also up in futures,” he said. “The supplies of cattle remain quite tight; packers remain good buyers.”

Some people argue that the upward trend isn’t justified because more cattle will be coming to market in November and December, Stanley said, adding, however, that with the discount of futures to cash and with the October contract expiring on Monday, it’s risky to be on the sell side.