CME:Feed Report Gives Near Contracts Boost, Futures End Mixed, Monday27 February 2013
US - Live cattle futures got off to a firmer start, with nearby contracts gapping higher on the open, write market analysts at Profarmer.
But buying interest dried up and futures ended mixed for the day. Nearby contracts saw an early boost thanks to Friday's Cattle on Feed Report that showed Placements and Marketings above year-ago levels and On Feed down from last year. This encouraged bull spreading.
April cattle traded moderately higher early today and pushed to a 3-session high. Friday's cattle-on-Feed report showed strong and active marketings in January which has traders looking at a little less cattle available for slaughter in the next few weeks than expected.
Higher than expected placements for the month left June and August cattle near unchanged early today. On top of the marketings pace, traders see slower weight gains in the plains after 2 snowstorms in 5 days as parts of Oklahoma and Kansas are being hit yesterday with more snow and high winds.
Frozen beef supply for January 31st was pegged at 484 million pounds which was down slightly from last year and up 3.9 per cent from December. The news is seen as a slight negative as stocks typically decline slightly in December.
Cash traded higher on Friday at $125.00 in Kansas and Nebraska and traders see a higher tone for this week.
Boxed-beef cut-out values at mid-session today reached $183.25, up $.36 from Friday but down from $181.95 last week at this time.
Slaughter came in even lower than expected at just 87,000 head which could be partially a weather issue.
TheMeatSite News Desk