CME: Futures Trade Higher, Friday29 July 2013
US - Live cattle futures traded slightly to moderately higher through Friday, slumping somewhat into the close to end mid- to low-range. August cattle finished on $121.80, up 15 cents.
Futures finished 10 to 35 cents higher. Feeder cattle futures traded in a narrow range and finished 25 to 75 cents higher. The cash cattle market is stabilizing with the bulk of the trade in the Southern Plains at steady $119 prices, while Nebraska cash cattle traded slightly firmer, write ProFarmer's expert analysts.
October cattle closed 35 higher on the session and managed to close 37 lower for the week, say CME commentators.
The market saw choppy and two-sided trade ahead of the pit opening this morning but speculative buying emerged to support solid gains on the day into the mid-session.
Traders continue to believe that the cash market has put in a summer low and the market seems to be able to find new buyers even with the futures premium to cash.
Weights are already on the rise and cheaper corn values plus the premium structure of the market are factors which might encourage producers to push cattle to even higher weight before slaughter.
Even August cattle managed to rally to 122.37 Friday with cash cattle trading at $119.00 this week.
A bounce in beef prices Thursday helped to provide underlying support and so did talk of colder weather for this weekend.
Boxed-beef cut-out values at mid-session came in at $187.01, down $0.65 on the day and down from $189.22 last week at this time.
TheCattleSite News Desk