CME: Cattle Futures Finished Mixed Wednesday01 August 2013
US - Live cattle futures finished narrowly mixed today. The August and October contracts closed 20 and 17 1/2 cents lower, respectively, while the December contract finished steady and far-deferred contracts were mildly higher.
Futures were choppy as traders await direction from the cash cattle market. Feeder cattle closed 17 1/2 to 50 cents higher, which was high-range. A lack of direction from either live cattle or the corn market kept feeder cattle in a tight trading range today.
October cattle closed slightly lower on the day after choppy and two-sided trade early in the session. The market drifted down to challenge yesterday's lows into the mid-session but futures bounce off of the lows. A recovery bounce in hogs after a steep 4-day break helped to stabilize the market.
The premium of futures to last week's cash trade at $119.00 has helped to provide some selling pressure as traders are now counting on a significant rally in the cash market and the beef market over the near-term.
There is a lack of bids so far this week with offers in the southern plains emerging at $122.00. Traders have mixed feelings on the extent of strength in the cash market this week with a higher showlist and beef prices about unchanged on the week.
Boxed beef cutout values were down 16 cents on the mid-day wire to $186.62. This was down from $186.89 one week ago. Volume is up from recent days which is seen as a positive development. Slaughter came in slightly higher than trade expectations at 124,000 head.
TheCattleSite News Desk