CME: Futures Close Low After Strong Start, Tuesday06 March 2013
US - Live cattle futures finished with losses of 67 1/2 cents to $1.07 1/2, which was in the lower portion of Tuesday's range.
Live cattle futures were higher for much of the morning, but buying interest dried up ahead of midday amid ongoing demand concerns. Feeder cattle futures ended 77 1/2 cents to $1.55 lower, which was on or near session lows.
Even with poor feedlot weather and a continued run higher in beef prices, April cattle closed moderately lower on the day.
Ideas that the market was overdone on the upside after recent strong gains helped to spark the reversal. The market pushed to the highest level since February 8th early today but saw choppy to lower trade since the pit opening and the market closed sharply lower on the day.
The move under Monday's lows might have attracted some additional technical selling as the reversal might attract increased long liquidation. More talk of furloughs and the inability of the market to find further support from weather or from a surging stock market helped to pressure.
The 6-10 day wet pattern opens the door for wet and muddy feedlots conditions; especially in Nebraska into the middle of the month which might keep weights low.
Cattle slaughter came in at 121,000 head which was about as expected.
Boxed beef cutout values were up $1.47 at mid-session to $192.43 which is up from $184.31 last week at this time.
TheCattleSite News Desk