CME: Futures 10-90 cents Higher With April Lower Thursday25 January 2013
US - Nearby live cattle futures gapped higher on the open and finished 10 to 90 cents higher in all but the April contract, which ended 10 cents lower, write experts at Profarmer.
This was a low-range close for most contracts. Futures benefited from ideas the boxed beef market is searching for a low and that the downside has been overdone recently.
The market saw choppy and two-sided trade near the pit opening and the pit close but April saw solid buying support late in the session to close moderately higher on the day.
Buyers turned a bit more active into the pit opening this morning on continued talk that the break last week was overdone and that the short-term sloppy cash fundamentals will soon shift to a more positive tone as supply tightens ahead.
Weakness in beef prices late yesterday and more talk that packers are anxious sellers after Texas traded at $122.00 yesterday helped to limit the advance. Cash cattle traded $123.00 today which was up $1.00 from yesterday and may have helped to support.
A surge in the stock market added to the positive tone early. While traders see a negative tilt to the Cattle-on-Feed report for Friday, there is more talk that Japan may soon announce lower restrictions on beef imports and this is seen as an offset.
Beef prices pushed down to the lowest since October 1st late yesterday. Boxed-beef cut-out values fell $1.63 on the mid-day wire to $188.15 from $$193.83 last week at this time. Slaughter came in right on trade expectations at 125,000 head.
TheCattleSite News Desk