CME: Futures Close Sharply Lower Wednesday10 January 2013
US - April futures closed at the lowest levels for a month as selling caused the market to drop, reports the Chicago Mercantile Exchange
February cattle closed sharply lower on the session with more active speculator and fund trader selling noted. April cattle closed at the lowest level since December 10th and selling increased as futures pushed under the January 2nd lows.
The market saw choppy and even slightly higher trade right into the pit opening but selling emerged to drive the market sharply lower on the day into the mid-session and down to the lowest level since December 14th. Weakness in the hog market helped to pressure and speculative sellers may have also been a bit more active due to better than expected weather.
The rain/snow event for the southern plains came in farther east than expected and feedlot regions in Texas, Oklahoma and Kansas are seeing mostly warm and dry conditions over the near-term which has traders see better than normal weight gains and a slight jump in production.
Talk of disappointing cash trade so far this week, news of higher showlist supply this week and questionable beef demand were other factors which helped spark selling. Choice boxed-beef cut-out values were down $0.52 at mid-day to $193.46 as compared with $193.94 last week at this time.
Select boxed-beef cut-out values at mid-session were up $0.30 to $183.61 as compared with $182.62 last week at this time. Slaughter came in below trade expectations at 123,000 head.
TheCattleSite News Desk