CME: Futures Close Higher As Sunshine In The Plains Supports Demand, Tuesday12 June 2013
US - Live cattle futures closed 90 cents to $1.27 1/2 higher through the June 2014 contract, which was high-range but off session highs.
Continued strength in the hog market sparked some life in live cattle futures on Tuesday, though gains were purely corrective in nature as traders covered short positions, write analysts at Profarmer.
Cattle closed sharply higher on the day and back into the recent trading range, say experts at CME.
After trading near unchanged into the pit opening, August cattle saw solid buying and pushed up to a 5-session high and traded as much as 205 higher on the day into the mid-session.
A turn higher in beef prices yesterday plus continued solid gains in the hog market helped support new buying and short-covering.
Talk of high temperatures in the plains plus the discount of futures to the cash market helped to support as traders see the heat as a factor to lower weight gains and this might help tighten-up supply during a period of peak demand.
Boxed-beef cut-out values at mid-session came in at $203.06, down $.12 from Monday and compared with $205.29 last week at this time.
Slaughter came in slightly above trade expectations at 125,000 head.
TheCattleSite News Desk