Cattle rose on speculation that investors who bet on a price decline are buying back contracts after futures slumped in May for the first month since October. Hogs also rose.
Cattle futures fell 5.3% after reaching a 19-month high in May. Prices also rose because of lingering concern that many animals are lighter than normal, which means they will yield less beef, said Jason Britt, the president of Central States Commodities, Inc.
“Maybe we’ve pulled enough off this market in the short term,” after last month’s price decline, Britt said from Kansas City, MO. The U.S. cattle herd reflects the “hangover from the hard winter,” he said. “Weights are still down, so that’s kept the cattle market current.”
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