Oct. 17 (Bloomberg) -- Cattle futures extended a rally to an nine-month high on signs that tight animal supplies will shrink U.S. beef output. Hog prices rose.
At a cattle auction yesterday in Elkhart, Texas, steers weighing 500 pounds (227 kilograms) to 600 pounds fetched as much as $1.77 a pound, up 1.1 percent from a week earlier, according to Anderson County Livestock Auction. U.S. beef production is estimated to decline 5.6 percent in 2014 after a 1.2 percent drop this year, the U.S. Department of Agriculture said Sept. 12.
“There are less cattle available than what we thought going into this time frame,” Ryan Turner, a risk-management consultant with FCStone Group Inc. in Kansas City, Missouri, said in a telephone interview.
Cattle futures for December delivery rose 0.3 percent to $1.337 a pound at 11:20 a.m. on the Chicago Mercantile Exchange, after reaching $1.34, the highest for a most-active contract since Jan. 16.
Feeder-cattle futures for November settlement increased 0.5 percent to $1.685 a pound on the CME. The price reached a record $1.6995 on Oct. 14.
Hog futures for December settlement climbed 0.2 percent to 88.975 cents a pound. Earlier, the price touched 89.9 cents, the highest for the most-active contract since Sept. 6.
--Editors: Millie Munshi, Patrick McKiernan