CME: Futures Lift as Traders React to Higher Beef Prices, Thursday26 July 2013
US - Live cattle futures traded moderately lower but firmed at the close to post high-range with August cattle gaining seven cents to $121.65.
Futures finished mixed with the August contract up 7 1/2 cents, October down 17 1/2 cents and December up 5 cents. February and later contracts closed 5 to 50 cents lower, write ProFarmer analysts.
The cash market saw some sales occur in the Texas market at $1.19, matching price levels of a week earlier and prices paid in Kansas on Wednesday.
October cattle closed slightly lower on the session and managed to recover all of the early losses, say CME experts.
The market fell sharply early in the session and the move to the lowest level since June 26th sparked some additional technical selling to drive the market down as much as 112 points after the pit opening.
The market was trading higher on the day ahead of the pit opening as traders reacted to higher beef prices from late Wednesday. There is talk that the colder weather for the weekend might help boost demand and this helped to support the trade overnight.
Weakness in the stock market and a sell-off in feeder cattle even with weakness in grains helped to pressure the market early. Weekly export sales came in at 14,900 tonnes, compared with the prior 4-week average of 15,550.
Cumulative sales for 2013 have reached 470,200 metric tonnes, down 16.3 per cent from last year's pace.
Boxed-beef cut-out values at mid-session came in at $187.92, up $1.03 on the day but down from $189.30 last week at this time.
Slaughter came in slightly below trade expectations at 122,000 head.
TheMeatSite News Desk