CME: Futures Close Lower, Friday with Week-on-Week Gains25 March 2013
US - Live cattle futures faced pressure to wrap up the week and ended 22 1/2 to 82 1/2 cents lower for Friday, write market analysts at ProFarmer.
Most contracts ended with slight week-over-week gains. Friday's Cattle on Feed Report should help the cattle market to put in a low this week and it reflected even more supply tightening than expected, with On Feed coming in at 93 per cent of year-ago and Placements at 86 per cent of year-ago levels.
This signals feedlots are current and feeder calf supplies are tightening.
June cattle closed 82 lower on the session and down 12 on the day.
The market pushed moderately lower on the day into the mid-session with traders disappointed with the weak action for the boxed-beef market and with the cold weather forecast for next week in the central and eastern part of the country, write experts at the Chicago Mercantile Exchange.
The monthly Cattle-on-Feed report and Cold Storage reports will be released after the close and may influence the market next week.
Traders are looking for a 9 per cent drop in February placements, a 7 per cent drop in February marketings and March 1st on-feed supply near 6 1/2 per cent under last year.
Poor grilling demand weather, a weak beef market and one less slaughter day next week has traders nervous that demand for live inventory next week will be sluggish.
Boxed-beef cut-out values at mid-session came in at $192.17, down $.81 on the session and down from $195.42 last week at this time.
Cattle slaughter came in below trade expectations at 111,000 head.
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