CME: Futures Close Down 32 Cents to $119.50, Tuesday19 June 2013
US - Live cattle futures were unable to follow Monday's bullish reversals in many contracts with gains, reflecting traders' cautious attitude about extending long positions.
Live cattle futures ended 7 1/2 to 32 1/2 cents lower, with nearbys generally leading losses, writes markets experts at ProFarmer. Given this week's larger showlist, traders are hesitant to extend long positions and feel comfortable with the slight discount nearbys hold to last week's $120 cash cattle trade in the Southern Plains.
August cattle closed slightly lower on Tuesday with a relatively small range and an inside trading session, say CME analysts. No follow-through buying was seen on the mid-session bounce.
The market saw choppy to mostly lower trade early today and was trading down as much as 67 lower on the day into the pit opening.
However, support held and the market was trading slightly higher on the day into the mid-session. Ideas that the beef market has stabilized in the past several days has helped to provide some underlying support.
Talk of improving export demand and decent weekend clearance from this past weekend helped to support as well. Traders believe that retailers are still booking beef for the 4th of July holiday and that beef prices could firm.
The discount to the cash market added to the positive tone and a jump in the stock market was also seen as a positive force to hold consumer sentiment at a firm level.
Boxed-beef cut-out values at mid-session were mixed with choice beef down 53 cents to $200.66 and select up $1.16 to $185.19.
Slaughter came in above trade expectations at 125,000 head which can sometimes indicated stronger than expected demand for live inventory from the packer.
TheCattleSite News Desk