CME: All Contracts End High Range, Monday05 March 2013
US - April through August live cattle closed 20 to 45 cents higher, with the rest of the market narrowly mixed as all contracts ended high-range, write market experts at Profarmer.
Traders took a cautious approach to the market to start the week, but buying picked up around midday on strength in the boxed beef market. Choice beef values improved $2.03 and Select rose $1.34 this morning, but movement was light.
April cattle closed moderately higher on the day as the surge in beef prices over the past week leaves a positive tone for the cash cattle trend ahead. The market saw a choppy and two-sided trade early today before working higher to close firm, according to market experts at Chicago Mercanitle Exchange.
Weakness in hogs and grain markets seem to have limited the advance. April cattle traded to the highest level since February 8th on Friday and the market set-back and is waiting for further direction from the cash market.
Beef prices pushed up sharply from last week and traders see a tighter supply ahead due to low placements in the fall and major weight loss from the winter storms of the past few weeks.
Traders remain concerned with the demand for beef as consumers have been hit with higher gas prices, higher taxes and person income took the biggest hit in 20 years from the release on Friday.
Strength in the US dollar also has traders concerned with weaker export demand.
Cattle slaughter came in well above trade expectations at 120,000 head which might suggest that feedlot demand is a little better than expected.
Boxed beef cutout values were up $2.03 at mid-session to $190.13 which is up from $183.09 last week at this time.
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