Cattle Futures: October Cattle Lead Losses, Tuesday16 October 2013
US - Live cattle contracts closed lower, led by the front contract which closed 95 cents to $128.50.
Analysts attributed pressure price to a lift in deliveries and US$ concerns.
December cattle closed 40 lower on the day and up 25 points from the mid-session lows. A surge higher in hogs and weakness in financial markets were seen as mixed signals from a demand perspective to keep the trade choppy.
News of big deliveries overnight and a sharp set-back in feeder cattle off of yesterday's all-time highs helped to pressure. The move under yesterday's lows failed to attract increased selling and the market bounced well off of the lows.
Cash cattle offers start the week at $130.00 with traders waiting for bids to develop.
Choice boxed-beef cut-out values (compliments of Urner Barry) were up 67 cents on the mid-day wire with select beef up 54 cents.
The stiff premium of the futures to the cash market may have added to the selling pressures.
TheCattleSite News Desk