CME: Cattle Closed Lower on Thursday13 September 2013
US - After closing lower for 7 sessions in a row, December cattle closed just slightly higher on the day as the early test of Wednesday's highs failed and the market saw a steady flow of long liquidation selling.
While closing higher, the market also managed to trade at the lowest level since August 8th. The market saw a some early strength based on ideas that beef and cash markets are near value levels with talk of a firmer demand tone ahead. Talk of the oversold condition of the market, a seasonal increase in demand ahead and cooler Midwest weather were all factors which helped to support.
Weekly U.S. beef export sales for the week ending September 5th was also seen as a supportive force coming in at 18,800 metric tonnes, compared with the prior 4-week average of 17,475.
Cumulative sales for 2013 have reached 579,200 metric tonnes, down -15.1% from last year's pace.
Beef prices were slightly higher late yesterday and this brought about a steadier tone for the market this week which added to the positive tone. Since packers are pulling cattle from September contracted cattle, traders are not too optimistic over cash trading even steady this week. Many expected steady to $1.00 lower.
Boxed-beef cut-out values at mid-session were down 7 cents to $193.86 from $195.86 last week.
Slaughter came in well above trade expectations at 113,000 head.
TheCattleSite News Desk