CME: Futures Rebound, Thursday15 February 2013
US - Live cattle futures staged an impressive rebound around midday and settled 37 1/2 to 77 1/2 cents higher, write analysts at Chicago Mercantile Exchange.
Several contracts posted bullish reversals on Thursday. Live cattle futures faced heavy pressure this morning amid concerns about a possible furlough of meat inspectors at the start of March, which could halt meat exports, experts at Profarmer have said.
April cattle closed 37 higher on the session and up 215 points from the low. The market exhausted the new selling early in the day and the outlook for tightening supply was enough to spark new buying and short-covering into the close.
News of more deliveries, a much weaker than expected cash market and the steep losses in pork values overnight contributed to the aggressive long-liquidation selling early in the day. The market managed to bounce sharply on the day into the mid-session with April cattle down just slightly on the day as the selling subsided.
With July corn down for the 10th day in a row, March feeder cattle finally found some support to trade higher on the day which helped pull cattle off of the early lows. Cash is bid at $122.00-$123.00 as compared with $125.00 trade last week.
Weather looked threatening for next week yesterday but traders seem less certain of snowstorm issues in the western areas of Kansas and Oklahoma today. Weekly export sales were expected to show a significant pick-up from recent weeks but came in at only 7,300 tonnes as compared with the prior 4-week average of 13,475 tonnes.
Cumulative sales for 2013 have reached 163,500 metric tonnes, down -1.8 per cent from last year's pace. Slaughter came in right on trade expectations at 119,000 head which was a nice recovery from the slow slaughter yesterday.
TheCattleSite News Desk