CME: Live and Feeder Cattle Futures Finish Week Strongly24 June 2013
US - Live and feeder cattle futures posted strong daily gains to end the week higher, up $1.30 for June on $121.25.
Futures were supported by short-covering and position squaring as traders prepared for what they expected to be a bullish Cattle on Feed Report.
Friday's Cattle on Feed Report is getting a slightly negative read as it showed total cattle on feed above expectations, but the Cold Storage Report reflected a tightening supply situation and better-than-expected demand.
August cattle closed 172 higher on the session and up 340 for the week. The market saw choppy and two-sided trade early in the session as traders position ahead of the USDA report for release after the close.
Talk of short-covering helped support but there was talk of a firm tone to the cash market. Into the mid-session, the market saw a sudden surge higher with August trading to the highest level since May 6th.
Traders see placements for the month of May near 5 per cent below last year due to tightening feed supply with marketings down about 2 per cent from last year. This would result in June 1st on-feed supply near 96.25 per cent of last year.
Boxed-beef cut-out at mid-session came in at $199.54, up 24 cents on the day and about unchanged from $199.53 last week at this time.
Select beef is up 53 cents to $186.41 from $183.79 last week.
Slaughter came in a little higher than expected at 123,000 head.
TheCattleSite News Desk