Commerzbank: Cattle price rally not over yet

The rally in cattle prices has further to run, driven by recovering demand for beef at a time of constrained supplies, Commerzbank has said, even as many gave US herd data a lukewarm welcome.

Official statistics on Friday showed the decline in American cattle dynamics declining slower than many analysts had expected, with the number of placements of cattle in feedlots falling by 2%, compared with a forecast 5% drop.
"The Cattle on Feed report was slightly bearish," US Commodities said, a comment echoed by many other brokers.

Live cattle prices, which closed the last session at their highest since November 2008, finished down 0.8% at 92.05 cents a pound in Chicago on Monday, for February delivery. March feeder cattle dropped 0.8% from a six-month top to 101.825 cents a pound.