Corn prices rose for the second straight day as U.S. cattle and milk futures climbed to records, signaling higher grain demand from livestock producers. Wheat and soybeans fell.
Cattle in Chicago have climbed 16 percent since June 30, and hogs have advanced to a six-month high. Milk futures reached an all-time high of $22.47 per 100 pounds. Egg output rose 2 percent in December from a year earlier, government data show. Corn prices have tumbled 41 percent in the past 12 months.
“This is ‘go’ time for the livestock and chicken industries with lower feed costs and rising meat prices,” Brian Grete, the senior market analyst at the Professional Farmers of America newsletter in Cedar Falls, Iowa, said in a telephone interview. “The plunge in corn prices will encourage producers to pack on more pounds on every animal and encourage expansion.”