CME: Futures End Higher, Slaughter Higher Than Expected, Monday04 June 2013
US - Live cattle futures finished 57 1/2 cents to $1.02 1/2 lower, which was in the lower end of Monday's range but off session lows.
Demand concerns continue to hang over the cattle market, keeping traders comfortable with futures at a sizable discount to the cash market, says ProFarmer. Those demand concerns were incentive for traders to sell cattle futures yesterday after a modest, corrective price recovery last week.
August cattle closed moderately lower on the session but managed to bounce about 50 points off of the mid-session lows, say CME experts.
The market traded sharply lower on the session into the mid-day as weakness in beef on Friday, lower corn prices and fund trader long liquidation selling helped to pressure.
Disappointment over the lack of higher trade in the cash market last week and continued talk that a seasonal peak is in place for beef prices helped to pressure. There seems to be plenty of uncertainty over the cash cattle direction this week with some traders expecting a weaker tone for early this week due to what appears to be sluggish beef prices and ample supply.
Outside market forces look a bit positive but weakness in grain and a slow PMI number for the US helped to pressure.
Traders expect offers in the cash market near $126.00 but there is uncertainty over where cash bids might appear.
Boxed-beef cut-out values at mid-session came in at $207.10, up 45 cents from Friday but down from $208.87 last week at this time.
Slaughter came in slightly higher than expected at 124,000 head. The higher close for feeder cattle may have helped provide some support to cattle.
TheCattleSite News Desk