Low Market Sees Cattle Rally18 November 2013
US - December Live cattle closed 42 cents higher on Friday and up 100 points for the week.
The market was trading 30 lower on the day into the pit opening but fund traders remained active buyers and supported the rally to higher on the day, write CME analysts.
Cash cattle traded steady in Texas and Kansas against last week at $132.00. Lower grain prices supported feeder cattle and this added to the positive tone.
Trader focus is on declining supply and improving seasonal demand into December. Boxed-beef cut-out values at mid-session came in at $201.20 which is down $1.36 from yesterday and down from $203.99 last week.
Weekly U.S. beef export sales for the week ending November 7th came in at 11,800 metric tonnes, compared with the prior 4-week average of 9,480.
Cumulative sales for 2013 have reached 677,300 metric tonnes, down 16.4 per cent from last year's pace. Slaughter came in slightly below trade expectations at 110,000 head.
For the week, slaughter reached 599,000 head, down 4.5 per cent .
Beef production for the week reached 480.3 million pounds which was down 3.4 per cent from last year due to higher weights.
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