CME: Futures Soften After Choppy Start, Tuesday27 March 2013
US - Cattle futures got off to a choppy start, but the market softened as the day progressed to finish near session lows with losses of 27 1/2 to 50 cents, write market analysts at ProFarmer.
Beef market concerns were back in focus today after the market saw a weak rebound on the Cattle on Feed Report data on Monday.
Boxed beef prices softened yesterday and this morning, though this did encourage stronger movement. The delayed start to spring grilling season and historically high beef prices are making it tough for the product market to put in a low.
June Cattle closed 32 lower on the session and traded slightly lower on the day after choppy trade early, write analysts from CME.
The market saw choppy to higher trade early today before the market slipped down into the mid-session.
The bullish supply news from Friday's Cattle-on-Feed report has been offset by a continued cold and sometimes wet weather forecast which is keeping the short-term demand weak as seasonal traders await the US grilling season.
The weekend snowstorm across the central US and into the East Coast certainly slows the start to better demand weather. Placements for the month of February at just 86.5 per cent of last year leaves the supply outlook into the early summer as tight.
August cattle are moderately lower on the day into the mid-session with futures testing Monday's lows.
Boxed-beef cut-out values at mid-session came in at $190.50, down 8 cents from Monday and down from $194.18 last week at this time.
Beef prices are hovering near the lowest price level since March 1st.
Slaughter came in slightly above trade expectations at 121,000 head.
TheCattleSite News Desk