CME: Futures Build on Summer Contracts, Tuesday29 May 2013
US - Live cattle futures favoured a firmer tone throughout the day and closed 17 1/2 cents to 97 1/2 cents higher.
Despite less-than-favourable weather to kick off the summer grilling season this Memorial Day weekend, the boxed beef market saw a solid start to the week, write ProFarmer analysts.
Choice values rose 17 cents this morning with 120 loads changing hands.
June cattle closed just 17 higher on the session and down 50 points from the early highs, say CME experts.
The market pushed higher early in the day and set-back to see choppy and two-sided trade into the mid-session.
August cattle traded more than 100 points higher early in the day but was trading just slightly higher on the day into the mid-session and closed just slightly higher on the day. A sharp break in beef prices from Thursday's all-time highs has traders very uncertain over the cash market direction this week.
Traders await clues on the retail clearance over the weekend. Higher corn prices helped to pressure feeder cattle which has kept trade choppy for live cattle.
Packer margins are deep in the black but there is some uncertainty over the short-term direction of the beef market.
Traders see packers with tight inventory and a need to boost available cattle supply into next week.
Boxed-beef cut-out values at mid-session came in at $209.04, up 17 cents on the day and down from $210.25 last week at this time.
Slaughter came in higher than expected at 125,000 head which can sometimes suggest strong demand from the packer.
TheMeatSite News Desk