CME: Futures Open Higher Followed by Limited Trading, Monday26 March 2013
US - Live cattle futures opened slightly higher on Monday and saw a fairly muted day of price action, closing 12 1/2 to 30 cents higher, according to experts at ProFarmer.
Futures were supported by Friday's Cattle on Feed Report that reminded the market of the tight supply situation and indicated supplies will tighten considerably by year's end as calf supplies dwindle.
Analysts at CME write that June live cattle traded modestly higher on the day but the bull camp expressed some disappointment in the upside move in the market given the better than expected Cattle on Feed report last Friday that showed placements for the month of February at just 86.5 per cent of last year, well below trade estimates at 91 per cent.
A questionable demand outlook along with unseasonably cool temperatures helped to offset the supportive supply-side data.
The cool start to the spring grilling season also has traders nervous that the beef demand may remain sluggish in the short term.
The US Dollar pushed sharply higher today which may have added pressure to the broader-commodity complex as well.
TheMeatSite News Desk