CME: April Cattle Trading at a Dollar Premium, Thursday22 March 2013
US - April live cattle are trading at around a dollar premium to the cash market, which is a fairly tight spread given the tight supply situation. Buying emerged to support solid gains on the day into the mid-session with follow-through technical buying helping to support, write CME analysts.
June cattle held on late to close slightly higher on the day but well off of the mid-session peak.
Weak beef prices on Thursday and a lack of new buying interest on the move to 4-session peak helped spark some selling and the market fell back toward unchanged, write CME analysts.
News that Congress is working on avoiding meat inspector furloughs for this year helped to support. Ideas that Friday's USDA update may show February placements into feedlots down about 9 per cent from last year helped to support the market.
Talk of the oversold condition of the market and very active volume of boxed-beef traded in the past two sessions added to the positive tone. Weekly U.S. beef export sales for the week ending March 14 came in at 15,300 metric tonnes, compared with the prior 4-week average of 18,250.
Cumulative sales for 2013 have reached 251,800 metric tonnes, down -10.0 per cent from last year's pace.
Boxed-beef cut-out values at mid-session came in at $192.00, down $1.41 on the session and down from $196.32 last week at this time.
Cattle slaughter came in a bit above trade expectations at 120,000 head.
TheCattleSite News Desk