U.S. cattle futures closed at their highest in more than a week on Tuesday as investors believe the warm, rain-free holiday weekend had revelers grilling hamburgers, steaks, hot dogs and other meats.
Brisk weekend meat sales would give the market a short-term boost. Longer-term traders will be looking to weeks of slow meat sales as hot summer weather will have consumers shifting away from meat and to cooler fare like salads, fruits and vegetables.
Feeder cattle set more records as investors bought after hearing about higher prices and strong demand at last week's cash feeder markets.
"Buyers were very aggressive to own cattle. Possession was the name of the game," USDA said in Friday's Kansas feeder-cattle summary.
A smaller cattle herd plus a drought in much of the Southern Plains depleted feeder-cattle supplies and has forced aggressive bidding by feedlots that need to fill cattle pens.
Two weeks ago, USDA reported an 11% drop in May feedlot placements vs. a year ago.
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