US live cattle futures hit seven-week high

US live cattle futures rose Monday (Apr 6) for the third straight session to reach a seven-week high as strength in the cash markets offset pressure from declines in the stock market.

Gains in beef prices and cash cattle markets from last week fuelled talks of demand ahead of the grilling season, when demand will be high.

Cash cattle traded at US$85 per cwt last week, up US$1 to US$2 from the previous week and up from US$81 - the low for the year from mid-February to mid-March.

April live cattle closed at 86.525 cents per pound, up 0.475 cents, and June was up 0.200 at 84.375 cents. Both months traded above the 100-day moving average and posted seven-week highs.

USDA on Monday put the wholesale choice boxed beef price up US$1.17 at US$136.75, the highest level since February 10. Select cut was up 61 cents at US$135.55 per cwt.

Demand for choice beef was weak as the recession forced consumers to turn toward cheaper meat. But a recovering stock market and hopes that the grilling season will spur demand provided support to the beef market.

Feeder cattle futures posted larger gains when profit taking pressure subsided.

April feeder cattle closed up 0.550 cents at 95.950 cents per pound, and May was up 0.750 cents at 97.450 cents.