CME: Futures Close Higher Tuesday23 January 2013
US - Live cattle futures closed 27 1/2 to 80 cents higher, which was anywhere from low-range to high-range for the day, write market analysts at CME group and Profarmer.
Ideas recent losses have been overdone fueled corrective buying in live cattle futures today. Support also came from bitterly cold temps, which are stressing cattle and will slow weight gains.
February cattle closed moderately higher on the day but set-back from a mid-session peak from sharply higher reports Profarmer.
Talk that Japan could lift or adjust some of the US beef import restrictions soon plus talk of the oversold condition of the market after last weeks collapse helped to spark the early buying support.
The market saw some selling pressure on the early higher opening as the steep break in beef prices late last week and more talk that the plant closure in Texas could limit the demand for live inventory helped to pressure. Traders see a declining showlist in the weeks ahead and this helped to provide some underlying support.
March feeder cattle saw follow-through to the upside after a reversal from a contract low on Friday and this may have sparked some technical buying as well. Boxed-beef cut-out values at mid-session were up $0.89 to $190.73 from $194.09 last week.
Select beef jumped $1.78 to $184.39 from $184.76 last week at this time. Slaughter came in near expectations at 127,000 head. The monthly cold storage report, released after the close, showed end of December frozen beef stocks at 465.5 million pounds which was up 1.8 per cent from last year and up 5.4 per cent from November.
Cold storage supply normally increases by 1.9 per cent for the month so the 5.4 per cent jump is considered a negative result.
TheCattleSite News Desk