Chicago Mercantile Exchange (CME) live cattle futures rose on Monday, extending the rally from the previous session, on strong wholesale beef prices and a higher close on Wall Street that lifted optimism about consumer demand for meat, Reuters reported, citing traders.
CME June live cattle futures settled up 2.275 cents to end at 199.075 cents per pound and May feeder cattle futures ended 2.250 cents higher at 280.950 cents per pound.
In the beef market, choice cuts of boxed beef rose $1.41 to $335.63 per hundredweight (cwt) and select cuts rose $1.89 to $315.85 per cwt on Monday afternoon, according to data from the US Department of Agriculture.
"The boxed beef showed a little bit of stability," said independent trader Dan Norcini, adding that strength in equity markets lent support to cattle futures as well.
"It has taken some of the fear factor out, when the stock market is not imploding."
A seasonal uptick in demand for meat likely added to bullish sentiment, Norcini said, noting that retailers will soon need to stock their meat cases with supplies for Mothers Day, Memorial Day and summertime grilling.
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