CHICAGO: Chicago Mercantile Exchange (CME) feeder cattle futures rose on Friday, led higher by deferred contracts, on expectations for lower cattle feed costs following a government forecast for a big build in corn supplies, traders and analysts said.
The US Department of Agriculture (USDA), in its May supply and demand report released on Friday, forecast a 164 percent increase in the supply of corn next year in the United States due to an expected record crop of over 14.0 billion bushels.
Chicago Board of Trade (CBOT) corn futures prices plunged two percent on Friday due to the forecast for a big buildup of corn stocks from a 16 year low this summer to a nine-year high when the new-crop harvest begins this fall.
"In feeders, from August on out, the report was bullish because it is saying there should be some cheaper corn and cheaper feed once the cattle are placed on feed later this year," said Dennis Smith a broker for Archer Financial.
CME August feeder cattle were up 0.650 cent per lb at 146.625 cents per lb and feeders for delivery in September were up 0.975 at 148.825 cents per lb.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>*
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