CME: Futures Close Lower To October 2014, Tuesday18 September 2013
US - Live cattle futures closed down for the twelve forward months with live cattle closing down 37 cents for October at $125.17.
December cattle closed sharply lower on the session but did managed a significant recovery off of the mid-session lows to close near the middle of the range, write CME analysts.
The market pushed sharply lower on the session early as long liquidation selling continued to pressure. A lack of tightness in the cash market, a higher showlist in Nebraska this week and sluggish beef prices are all factors which have helped spark the selling. Speculators appear tired of waiting for tightness with the futures market holding a stiff premium to the cash market.
Boxed beef cutout values were down to the lowest level since August 14th on Friday before a bounce slightly up since. Weakness in grains, metal markets and energy markets added to the negative tone.
Boxed-beef cut-out values at mid-session today came in at $192.99, down 3 cents from yesterday and down from $193.73 last week.
Slaughter came in slightly above trade expectations at 124,000 head which was up 5,000 from Monday and this is about the normal slaughter from the Colorado plant which was down yesterday.
TheCattleSite News Desk