CME: Cattle Futures Close Lower18 July 2013
US - The cattle complex slumped sharply lower with triple-digit losses dominating the feeder pit. On the other hand, lean hog contracts settled on a mixed basis with nearbys generally losing ground to deferreds.
August and October cattle closed sharply lower on the day with October seeing the worst close since June 25th. Futures traded near unchanged on the day into the pit opening but pushed sharply lower on the day into the mid-session.
A combination of heat and humidity for the East Coast and the Midwest for the next several days is seen as a bearish factor for consumer demand and this sparked some aggressive long liquidation selling after the pit opening.
Ideas that a seasonal low is already in place plus talk of a smaller showlist this week helped to support early today but the demand news managed to pressure the market as traders see very little "fill-in" buying from retailers for beef in the next week.
Boxed-beef cut-out values are down this week and volume of boxes traded was only 141 loads yesterday from 254 traded on July 10th. Boxed-beef cut-out values were down $1.04 at mid-session today to $189.43 from $193.07 last week. Positioning ahead of the USDA report for Friday may have added to the long liquidation trend.
Slaughter came in slightly above trade expectations at 125,000 head.
TheMeatSite News Desk