CHICAGO: Chicago Mercantile Exchange live cattle futures moved higher on Thursday as wholesale beef prices approached an all-time high, fueled by growing grilling demand, said analysts and traders. The wholesale price of choice beef, or cutout, Thursday morning rose 81 cents per cwt to $200.30 per cwt.
It is the highest since $200.65 on Oct 20, 2003 and near the Oct 16, 2003 record of $201.18, according to US Department of Agriculture.
"I'm sure packers are loading up for grilling specials. Even if the cutout stays where it is next week, I can see futures going higher," said Oak Investment Group President Joe Ocrant.
Live cattle June ended at 123.650 cents, up 1.175 cents. August closed up 0.775 cent at 123.875 cents.
This week's steady-to-higher cash cattle prices enhanced futures' advances.
Cash cattle in Texas and Kansas moved at $128 to $129 per cwt, steady to up $1 from last week, said feedlot sources. They said live-basis cattle in Nebraska fetched $130 to $131, steady to up $3.
Fewer cattle available for sale and robust wholesale beef demand caused processors to pay at least steady money for supplies, traders and analysts said.
Spot-June CME live cattle benefited from bullish spreads. The move offset funds that sold the spot month and bought deferred contracts in advance of similar moves next week by followers of the Goldman Sachs Commodity Index.
Funds that follow the Standard & Poor's Goldman Sachs Commodity Index will shift their June long positions into August and October. The first of five days for that roll will begin on May 7.
CME feeder cattle futures closed in tandem with the higher live cattle market.
May feeder cattle closed at 140.600 cents, 1.100 cents per lb higher. And August settled up 0.925 cent at 149.650 cents.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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