Catalina.out is just a dump from the java.utilities.logging service (JULI) to the Tomcat JVM's stdout file, which is redirected from the console by the Tomcat startup script.
To get that information to rotate, you'd need to reconfigure logging to use a true logging channel that has rotation capabilities. I don't remember if JULI has such a thing, though. Log4j does, although to use Log4j, you'd need to follow the instructions in the Tomcat docs on how to reconfigure logging, and IIRC, that includes actually doing a custom Tomcat build.
Or, if you're running in an environment that doesn't require 24x7 uptime, you can cheat. Shutdown Tomcat, move (rotate) the log using a shell script, restart Tomcat.
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