CME: Choppy Trade Sees August Cattle Close Down 32 Cents25 July 2013
US - Live cattle futures faded late to end steady, down 32 cents to $121.57.
Live cattle futures favored the upside through the morning as traders had hopes for firmer cash cattle trade in the Plains after packers moved bids to $119 -- steady with week-ago, write ProFarmer analysts.
But buying interest faded as word of $119 cash trade in Kansas surfaced.
October cattle saw choppy trade with an inside trading session while August cattle took out yesterday's lows as the premium continues to come out of futures, say commentators at CME.
October cattle traded as much as 55 points higher near the pit opening and was trading up 25 points on the day into the mid-session but trade was weak late in the day and the market closed 22 lower on the day.
The market found some support early today on word that cash cattle bids had emerged at $119.00.
Kansas cash cattle traded at $119.00 today which is steady with last week. However, beef prices are in a steady downtrend over the past ten days and cash is already at a stiff discount to August and October futures.
Ideas that the recent break in beef prices might help to stimulate demand and there is also hope that cooler weather for this weekend could help spark some improved demand as well and this helped to provide some underlying support.
Boxed-beef cut-out values at mid-session came in at $186.61, up $0.27 on the day but down from $189.44 last week at this time.
Slaughter came in below trade expectations at 121,000 head which is sometimes indicative of weak demand for live inventory from the packer.
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