Commodities : Livestock, Meat Futures Rise

Livestock and meat futures moved higher Wednesday, with the pork complex registering sharp gains on a strong cash market.

On other markets, lumber futures were sharply higher; most grain, soybean, livestock and meat futures advanced; and energy futures were lower, with some heating oil and gasoline contracts down sharply.

“We had higher prices for hogs at terminal markets and that seemed to prompt shorts to get out of the market (by buying to offset earlier sales),” said Charlie Richardson, an analyst in Denver with Lind-Waldock.

Also, he said, “There’s talk about a lot more cold weather coming to us from Canada. We’ve just had one blast . . . just had our first taste and now we’re going to have some more.

“This can be tough on livestock,” he said.

Cattle futures were higher, too, overcoming lower wholesale beef prices, which lost 2 cents a pound in two days.

Despite a decline in wholesale beef, packers have been unable to find cheap cattle and may have to increase their prices again, Richardson said. “The guys in the feedyards have been fairly active sellers the past couple weeks, so now they don’t feel pressed to sell,” he added. “They’re in a position to wait a few days” if they can’t get the price they want.