CME: Futures Close 45 to 67 Cents Lower, Thursday19 April 2013
US - Live cattle futures saw a choppy day of trade with nearbys favouring the downside for most of the session.
April through August contracts closed 45 to 67 1/2 cents lower, while deferreds were narrowly mixed. Traders in the cattle market took a step back and booked some profits as boxed beef action this morning indicated that beef demand concerns have not yet been laid to rest, write experts at ProFarmer.
June cattle closed 45 lower on the day as weakness in beef and a negative economic tone to financial markets helped to pressure the market. A bearish demand tone for beef continues with wet and cold weather across the central part of the country.
The market pushed to the highest level since April 9th early this morning but profit-taking selling and a weak tone to the stock market may have helped to pressure the market, say CME analysts.
The market was trading moderately lower on the day into the mid-session. A lack of deliveries, the discount of futures to the cash market and stronger beef prices this week have been factors to support.
Talk that cash cattle could trade steady this week has helped support the market but there is still some uncertainty over where cash will trade in the southern plains and there is positioning ahead of the Cattle-on-Feed report for Friday.
Weekly U.S. beef export sales for the week ending April 11th came in at 16,800 metric tonnes, compared with the prior 4-week average of 13,325.
Cumulative sales for 2013 have reached 306,600 metric tonnes, down -6.4 per cent from last year's pace.
Boxed-beef cut-out values at mid-session were down $.44 to $190.89 as compared with $190.15 last week at this time.
Slaughter came in below trade expectations at 119,000 head which can sometimes indicate weak demand from the packer.
TheCattleSite News Desk