CME: Futures Close Higher, Monday12 March 2013
US - Live cattle futures ended 5 to 57 1/2 cents higher, which was near a mid-range close for the day on Monday, write market analysts at ProFarmer.
Live cattle futures were supported by short-covering on Monday, with the April contract leading gains as traders worked to push the lead-month contract to a slight premium to last week's cash trade.
Weakness in hogs and a set-back in beef prices today may have been factors to limit the advance today but April cattle still managed to close moderately higher on the day.
The market pushed down early in the session to trade at the lowest level since May 2nd of last year but bargain-hunters emerged to spark a recovery bounce and the market traded sharply higher on the day into the mid-session with a 182 point range, write experts at the Chicago Mercantile Exchange.
Ideas that the cash cattle market can bounce higher this week helped to support on the early break. Boxed beef cutout values were up 4.88 per cent last week to $197.28, the highest beef trade since October 30th.
The higher beef price has already helped to shift margins into the black and this could leave packers in a position to bid cash higher this week.
June cattle traded slightly higher on the session after a move under Friday's lows but the market held well above the March 6th lows.
Cattle slaughter came in right on trade expectations at 120,000 head. Slaughter was the same last week and 123,000 head last year at this time.
Boxed beef cutout values were down $.55 at mid-session to $196.73 which is up from $190.96 last week at this time.
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