CME: Futures Close Higher, Thursday30 August 2013
US - Choppy trade firmed through the day leaving gains across most contracts as August futures closed up 35 cents at $123.55 up 35.
October cattle edged higher, up from $126.925 to $126.975.
December cattle close slightly higher on the day recovered from the weak close yesterday to trade 50 points higher on the day into the mid-session and right back up near the highs of the week.
Ideas that beef prices could push lower after Labor Day helped to pressure the market early but buyers were active.
Another day or two of heat in the plains could limit weight gains and this was seen as a supportive force. A bounce in the US dollar helped to limit the advance but a surge up in the stock market was seen as supportive. Weekly U.S. beef export sales for the week ending August 22nd came in at 23,200 metric tonnes, compared with the prior 4-week average of 12,275.
Cumulative sales for 2013 have reached 542,500 metric tonnes, down 16.1 per cent from last year's pace. There is still some uncertainty on cash cattle prices but with beef near the level of early July, many traders see packers willing to pay at least steady on the week.
The premium structure of the market may limit the buying support.
Boxed-beef cut-out values at mid-session came in at $195.88, down 40 cents on the day but still up from $195.84 last week at this time.
Slaughter came in slightly above trade expectations at 123,000 head.
TheCattleSite News Desk