Reuters reports feeder cattle (CME:GFK14) futures on Monday clocked a new all-time high for a fourth straight session, partly driven by expectations for tighter numbers of calves ahead, traders said. Feedlots are spending more for calves, or feeder cattle, made scarce after several years of drought in the United States sent the herd to a 63-year low.
Fund buying and lower corn prices contributed to CME feeder cattle advances that some traders believe are close to topping out soon. Despite cheaper corn and higher returns for feeders, feedlots are buying calves at a loss if market-ready cattle prices are unable to move higher, a trader said.
May closed 1.175 cents per lb higher at 188.475 cents, and August ended up 2.875 cents at 196.200.