CME: Futures Close Narrowly Higher with Bigger Far Gains, Monday02 July 2013
US - Live cattle futures closed 15 to 50 cents higher for the day, which was a high-range close for all but the front-month contract.
Buying and selling interest was limited yesterday as the market awaited cash clues this week, write market analysts at ProFarmer. Showlist estimates are slightly lower this week thanks to a 7,000-head decline in Kansas.
June cattle closed just 15 points higher Monday and well off of the mid-session peak, say CME experts. The market traded slightly lower on the day into the pit opening but held support under Friday's lows and managed to trade moderately higher on the day into the mid-session.
Ideas that the cash cattle may work slightly higher in the weeks ahead after holding steady last week at $120.00 helped to support the bounce. The showlist this week is slightly larger in Texas than last week but significantly smaller in Kansas and it appears that the total number out of 4 key states is a bit smaller.
In addition, a positive tone to the stock market, gold and energy markets helped leave a positive tilt to outside market forces and may have contributed to the buying support. Packers will be booking cattle for next week which is the first full slaughter week after the holiday.
There is a general sense that the weather over the holiday weekend which is slightly cooler than normal will be conducive to better than normal beef demand.
In addition, the National Restaurant Association performance Index in May hit a 14-month high at 101.8 and was up for the third month in a row. The index is for same-store sales and customer traffic and is another sign that consumer demand may be on the rise.
Boxed-beef cut-out at mid-session came in at $196.94, down $.56 on the day and down from $199.25 last week at this time. Volume on Friday was slow at just 111 boxes traded.
Slaughter came in slightly below trade expectations at 123,000 head.
TheMeatSite News Desk