CME: Futures Fail to Build on Thursday's Gains02 April 2013
US - Live cattle futures finished 15 to 47 1/2 cents lower in all but some of the far-deferred contracts, which were slightly higher, write analysts at Profarmer.
Live cattle futures were unable to build on last Thursday's strong gains. Instead, mild profit-taking was seen as demand concerns continue to hang over the market. Until those demand concerns are eased, traders will remain reluctant to actively pump money into the long side of the market.
June Cattle closed slightly lower on the day after seeing choppy and two-sided trade early, according to experts at the Chicago Mercantile Exchange.
The market saw choppy to a bit higher trade early in the day but pushed moderately lower on the day into the mid-session.
Ideas that the market was a bit overbought after the 2-day surge of as much as 347 points helped to spark the set-back off of the early peak.
The early rally pushed the market up to the highest level since March 7th. A continued sharp break in the corn market supported feeder cattle to another strong rally yesterdat which has helped to provide some support for cattle.
Beef prices have been weak in recent days but traders see better demand in the next few weeks as the weather shifts from below normal to above normal temperatures for much of the central and eastern US.
Cash cattle traded at $128-$129 late last week in Kansas, up $3-$4 from the previous week while Texas was up $2.00 on the week to $127.00.
Beef prices were nearly unchanged on Friday (down 2 cents) to $189.05.
Boxed-beef cut-out values at mid-session yesterday came in at $189.78, up 73 cents from Friday and down from $190.58 last week at this time.
Slaughter came in slightly above trade expectations at 106,000 head.
TheCattleSite News Desk