CME: Futures Surge June into August, Tuesday22 May 2013
US - Live cattle futures opened higher and closed mostly 90 cents to $1.30 higher.
Demand concerns moved to the back-burner today as Choice beef prices moved to a new record high for the seventh consecutive day, say market experts at Profarmer.
Expectations are building for at least steady cash trade and June futures remain at a sharp discount to last week's cash action.
The follow-through buying after Monday's reversal helped to confirm a reversal low for August cattle yesterday and the market closed sharply higher on the day and a 5-day high close, say CME experts.
The June cattle surge higher early in the session on further gains in the boxed-beef market late Monday and saw a secondary surge late to trade over yesterday's highs when the USDA confirmed higher beef prices again today.
A jump in August feeder cattle to trade sharply higher on the day helped to support the market as well.
The surge to yet another new high for beef prices late Monday leaves packer margins deep in the black and would suggest that packers could bid up for live inventory this week or next.
Boxed-beef cut-out values were up 21 cents to $210.46 at mid-session as compared with $206.09 last week at this time and this is yet another new all-time high.
Slaughter came in right on trade expectations at 124,000 head.
TheCattleSite News Desk