Oct. 4 (Bloomberg) -- Cattle futures rose to an eight-month high on signs of limited U.S. supplies and higher beef demand. Hogs climbed the most in a week.
Slaughter estimates for the week ending tomorrow fell 0.2 percent to 628,000 head of cattle, according to Urner Barry Beef, a Bayville, New Jersey-based publisher of data and news on agriculture markets. Prices climbed for seasonal cuts such as beef round, Troy Vetterkind, the owner of Vetterkind Cattle Brokerage in Chicago, said in a telephone interview.
“Supplies are going to be tight,” and meatpackers may need cattle immediately to meet beef demand, he said.
Cattle futures for December delivery rose 0.5 percent to close at $1.32425 a pound at 1 p.m. on the Chicago Mercantile Exchange. Earlier, the price reached $1.326, the highest for a most-active contract since Feb. 5. This year, the price has climbed 0.1 percent, erasing losses since February.
Hog futures for December settlement increased 1 percent to 87.625 cents a pound, the biggest gain since Sept. 24. The price dropped 0.6 percent this week.
Feeder-cattle futures for November settlement rose 0.2 percent to $1.6595.
The first U.S. government shutdown in 17 years is curbing the collection of cash-livestock prices and threatening to reduce transparency in the futures market used for price discovery by farmers and meat processors.
This week, CME Group Inc., the parent of the Chicago livestock exchange, suspended the publication of measurements of cash prices for hogs and feeder cattle. The indexes, used to settle some futures contracts, depend on data distributed by the U.S. Department of Agriculture. Parts of the agency have been shut.
--With assistance from Jeff Wilson from Chicago. Editors: Patrick McKiernan,