U.S. cattle futures hit all-time highs as strong global demand and the start of the grilling season in the U.S. bumped up against shrinking supplies.
Lean hog futures are lower on the day after setting new records Tuesday. Hog futures remain strong overall with demand holding up even as prices climb.
Cattle for June delivery closed up 1.4% at $1.19/lb., just below all-time highs at the Chicago Mercantile Exchange. June hog futures closed down 0.3% at $1.03/lb.
"Packers are making money, (cattle) feeders are making money and the meat is moving. We have never seen these kinds of dynamics before when all sectors were profitable," says Daniel Bluntzer, director of research for Frontier Risk Management, a commodities brokerage firm headquartered in Chicago.
Export demand continues to grow as developing nations have the means to consume more pork and beef. The U.S. is the low-cost supplier of pork and leads the world in exports. It also is a major exporter of beef, ranking third in the world behind Brazil and Australia on a volume basis.
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