CME: Futures Close 45 to 65 Cents Higher, Tuesday13 March 2013
US - Live cattle futures settled with gains of 45 to 65 cents, which was high-range for most contracts, write market analysts at ProFarmer.
Cattle traders covered short positions today as they are unwilling to be caught short considering uptrending boxed beef prices. Select cuts rose to a new all-time nominal high of $196.73 this morning (just 92 cents below Choice values).
April cattle closed moderately higher on Tuesday as traders seem to be waiting to see if the jump in beef prices recently will provide support to the cash market, write experts at Chicago Mercantile Exchange.
The market saw some follow-through buying this morning and pushed to a 3-session peak and pushed above 129.00 into the mid-session. Beef prices are up 3.1 per cent over the past week and this opens the door for higher trade in the cash market this week which helped to support the bounce.
The beef rally has supported packer margins and a declining supply ahead might support an uptrend in the cash market into April.
The 6-10 day forecast for the southern and eastern part of the US shows above normal temperatures which might help support improving consumer demand for beef; especially at this time of the year.
Open interest is at the highest level since May of last year which might indicate that the market could see increased short-covering on a bounce or increased selling on a break. June cattle closed slightly higher on the session with an inside trading day.
Cattle slaughter came in below trade expectations at 119,000 head which can sometimes indicate weak packer demand.
Boxed beef cutout values were up $.77 at mid-session to $197.65 which is up from $193.87 last week at this time.
TheCattleSite News Desk