Chicago Mercantile Exchange feeder cattle futures hit new all-time highs in the nearby contracts on Monday, as bidding wars continue to rally cash prices as more producers show interest in expanding their herds, traders said.
The rally helped give a boost to the pork market, where CME April lean hogs ended up 0.125 cent at 71.875 cents per pound, while most-active June lean hogs rose 1.3 cent at 88.175 cents per pound.
Tight U.S. cattle supplies have been rallying cash prices for weeks, as some cattle producers are gambling on fat profits by putting more animals on pasture this spring, traders said.
As supplies are expected to decline further in the second half of the year, investors on Monday shrugged off a rally in corn futures to further push for new price peaks in the cattle market, said Dan Norcini, an independent livestock trader.
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