By Kelsey Gee 
 

CHICAGO--U.S. cattle futures advanced Tuesday, as traders bet on a continued climb in the cash markets in the days ahead owing to tighter supplies of available animals.

Cattle futures for February rose 1.05 cents, or 0.9%, to $1.19575 a pound, after a 3.2% jump over the past week. April live cattle advanced 1.075 cents to $1.1900 a pound. Feeder cattle for January picked up 0.475 cent to $1.30925 a pound.

An upswing in the beef market and steady gains in the physical markets for cattle over the past three trading sessions have restored optimism that retail demand remains firm. Meatpackers typically have more incentive to bid aggressively for cattle in the negotiated markets when grocers and restaurant operators have larger orders for steaks and roasts, as was the case for much of December.

Producers last week fetched mostly $1.19 a pound live and from $1.89 to $1.90 a pound dressed for their cattle, marking a one-cent gain for most sellers compared with the previous week. Supplies of cattle marketed on showlists for sale this week are down from last week, underpinning expectations for further gains in the days ahead.

Meanwhile, a winter storm that pelted the central U.S. with snow and freezing rain this weekend has slowed the transport and production of livestock and meat early in the week. Dangerous road conditions in patches from Oklahoma to the upper Midwest have delayed or rerouted trucks carrying animals and beef, forcing some plants to scramble for supplies as temperatures rise, melting layers of ice.

Hog futures also advanced Tuesday. February lean-hog futures rose 0.2 cent, or 0.3%, to end at 65.80 cents a pound. April hogs rose 0.1 cent to 69.725 cents a pound.

-Write to Kelsey Gee at kelsey.gee@wsj.com

(END) Dow Jones Newswires

January 17, 2017 15:47 ET (20:47 GMT)

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