CME: Uncertainties See Futures Close Lower, Monday11 June 2013
US - Live cattle futures extended Friday's losses and ended 45 to 92 1/2 cents lower.
On top of follow through from Friday's losses, live cattle futures were pressured by concerns about the cash market after only light cash trade at $2 lower prices surfaced late last week, write ProFarmer market analysts.
August cattle closed lower and saw the worst close since May 23rd as hog/cattle spreading and economic uncertainties for beef demand helped to pressure, say CME experts.
The market traded as much as 85 lower on the session into the pit opening as a continued sharp drop in beef prices and consumer demand concerns sparked more spec long liquidation selling.
The early break pushed the market down to the lowest level since May 24th. Solid gains in the hog market may have helped spark the bounce off of the early lows into the mid-day.
Only a very small amount of cattle traded in the cash market late Friday at $122-$124 which was down $1-$2 from the previous week.
Now traders are concerned that the slow marketings pace of the past few weeks could cause the supply of market-ready cattle available for packers to swell this week which could keep the pressure on the cash market.
Boxed-beef cut-out values at mid-session came in at $203.09, up $1.52 from Friday and compared with $206.14 last week at this time.
Slaughter came in slightly above trade expectations at 124,000 head.
TheMeatSite News Desk