CME: Futures Close Mixed After Early Gains, Monday06 August 2013
US - Live cattle futures were unable to hold onto early gains and finished the day narrowly mixed. Futures closed near session lows, August cattle closed down 10 cents lower at $120.55.
Traders started the week with bullish cash cattle hopes, but buying interest faded as the session progressed as traders are unwilling to actively buy futures until the boxed beef market shows signs of a low. Feeder cattle futures traded within a tight range and finished narrowly mixed, write ProFarmer analysts.
October cattle managed to close slightly higher on the day with a fairly tight range of just 45 points and an inside trading session, write CME experts.
The market was up 50 on the day early in the session but could not hold and was trading slightly lower on the day into the mid-session.
Traders expect a seasonal low in beef and cash prices about now but the long liquidation selling trend is helping to pressure. Even very strong gains in hogs failed to help the market hold the early gains.
Record high steer weights for this time of the year and a lack of much movement in the cash market last week helped to hold buyers on the sidelines.
Weakness in the stock market and sluggish jobs data on Friday was also seen as a bearish force for higher-priced beef cuts.
Traders remain hopeful that cash cattle could turn higher into the fall and there is also talk that beef demand will begin to pick-up for Labor Day holiday specials.
Boxed-beef cut-out at mid-session were 43 cents lower to $186.78 from $186.41 last week at this time.
Slaughter came in slightly above trade expectations at 122,000 head.
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