CME: August and 2014 Futures Close Lower, Thursday14 June 2013
US - Live cattle futures were under light price pressure throughout the day and ended 15 to 45 cents lower in the 2013 contracts and 20 cents to $1 lower in the 2014 contracts.
Traders are waiting on cash cattle trade to begin and given this week's larger showlists and deterioration in Choice boxed beef values, traders aren't very optimistic packers will be willing to raise bids despite their positive profit margins, write ProFarmer analysts.
August cattle closed moderately lower on the session following the June and cash tone lower on the day. The market saw choppy and two-sided trade early yesterday and was trading slightly lower on the day into the mid-session with an inside trading day, say CME experts.
Weakness in beef prices and ideas that the market-ready supply of cattle for packers is higher this week has traders expecting a weaker tone to the cash market this week.
Ideas that heat in the plains could limit weight-gains short-term plus a positive tilt to the weekly export sales news helped to provide some support. Weekly U.S. beef export sales for the week ending June 6th came in at 13,000 metric tonnes, compared with the prior 4-week average of 6,850.
Cumulative sales for 2013 have reached 384,100 metric tonnes, down -17.1 per cent from last year's pace. Positive packer margins are seen as somewhat supportive but packer bids emerged this week at just $120.00 as compared with trade last week at $122-$124.
Boxed-beef cut-out values at mid-session came in at $200.34, down $1.45 from Wednesday and compared with $203.63 last week at this time.
Select beef was up 61 cents to $184.92 from $184.84 last week.
Slaughter came in slightly above trade expectations at 124,000 head.
TheCattleSite News Desk