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Record Livestock Prices Driving Up Demand In Corn/Grains

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.”

Bloomberg [1]

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Mingze Wu

Mingze Wu [6]

Currency Analyst at Market Pulse [7]
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu
Mingze Wu

+Mingze Wu [10]