CME: Cash Cattle at $128 Gives Buoyancy, Thursday12 April 2013
US - Live cattle futures enjoyed slight gains for most of the day and futures ultimately settled 17 1/2 to 65 cents higher.
This was good for a mid-range close. Cattle futures saw corrective short-covering today amid ideas of Wednesday's sharp losses were overdone, write market experts at ProFarmer.
Cash cattle trade got off to a disappointing start at $127 yesterday in Texas and Kansas and so far just light sales have taken place in northern locations at $127.50 to $128 on Thursday.
June cattle closed 65 higher on the session as news of $128.00 cash trade in Nebraska and Colorado helped to support the trade psychology. The market saw steady to higher trade early and experienced moderate gains into the mid-session to recover part of yesterday's significant losses, write experts at CME.
Beef prices were lower late Wednesay but volume of trade increased and traders see the need for an increased flow through the pipeline in the next few weeks if consumer demand takes a seasonal pop when the weather turns more favourable for grilling.
In addition, buyers were a bit more active with talk of the oversold condition and talk of the discount of futures to the cash. There were no deliveries for the third day of the delivery period and traders saw $128.00 trade in the cash market in Colorado as somewhat supportive.
There was talk that Texas cash was bid up to $127.50 late on Wednesday. Weekly U.S. beef export sales for the week ending April 4th came in at 10,200 metric tonnes, compared with the prior 4-week average of 18,650.
Cumulative sales for 2013 have reached 289,800 metric tonnes, down -5.5 per cent from last year's pace.
Boxed-beef cut-out values at mid-session were down 67 cents to $190.28 as compared with $190.28 last week at this time.
Slaughter came in a little higher than expected at 123,000 head which can sometimes mean improving demand from the packer.
TheCattleSite News Desk