CME: Futures Continue to Dip After Early Rallies, Wednesday08 August 2013
US - Live cattle futures closed mixed and near their lows of the day causing a 32 cents lift in August live cattle $120.92.
The lead-month August contract ended 30 cents higher while deferred futures closed 25 cents lower to 7 1/2 cents higher, say ProFarmer experts.
Traders continue to look for confirmation of a seasonal low. The boxed beef market obliged with a gain $1.49 in Choice beef prices and 59 cents in Select beef in morning trading. Movement was positive as well.
October cattle closed unchanged on the day and down 105 points from the highs, write commentators at the CME. This is similar action to the last five trading sessions as the market can not hold early rallies and the market has closed all five session in the 124.47 to 124.67 range.
Ideas that cash cattle could work higher over the near-term, a jump in beef prices late Tuesday and talk that a strong stopper took the 50 deliveries from on Tuesdayhelped to support.
There were 60 new deliveries overnight as well and traders view commercial demand for the deliveries as a supportive signal. Traders believe that beef prices reached a low enough level to spark new demand and beef closed 71 cents higher at $187.17 on Tuesday.
In addition, traders see improving demand weather for the weekends just ahead and improved bookings for beef from retailers for the Labor Day holiday. Boxed beef cutout values were up to $187.17 late Tuesday from $186.78 the prior week.
Boxed-beef cut-out at mid-session was up $1.49 to $188.66 from $186.32 last week at this time.
A lack of new bids or offers in the cash market so far this week along with hefty weights might be part of the reason for the set-back from the early highs.
Slaughter came in near trade expectations at 124,000 head.
TheMeatSite News Desk