CME: Futures Close Week Lower, Friday18 June 2013
US - Live cattle futures were lower for the day and posted moderate losses for the week.
Feeder futures were sharply lower on Friday, but for the week were steady to firmer compared to last week's close, write ProFarmer analysts.
Bears clearly hold the near-term advantage in the cattle market and it will be difficult for the market to generate much more than short-covering after $2 lower cash cattle trade began in Texas on Friday at $120.
August cattle closed 75 lower on the session and down 90 for the week, say experts at CME.
The market traded back down at the lows of the week early Friday and is approaching the low end of the recent 5-week consolidation.
A continued weak trend in beef prices this week and continued concerns over consumer beef demand after 4th of July bookings are complete have helped to hold futures at a good discount to last week's cash market.
Traders await cash cattle trade this week but many are expecting lower trade.
Positive packer margins are seen as somewhat supportive but packer bids emerged this week at only $120.00 as compared with trade last week at $122-$124.
Boxed-beef cut-out values at mid-session were down 48 cents at $200.15 as compared with $201.57 last week.
Deferred cattle also pushed lower on the day and weakness in the stock market added to the negative tone.
TheMeatSite News Desk