CME: Futures Lower After Volatile Trading Day, Wednesday07 March 2013
US - Live cattle futures trimmed losses into the close to finish 35 cents to $1.00 lower on Wednesday, write market experts at Profarmer.
Futures gapped lower on the open on followthrough from yesterday's bearish reversal, with additional pressure coming from news that cash cattle trade was getting underway at steady prices with last week at $128 in Kansas and Texas.
April cattle closed moderately lower on the day but about 20 points above the midpoint of the range in a volatile trading session April and June cattle pushed to new lows for the move this morning trading sharply lower on the day into the pit opening, write analysts at CME.
Cash was expected to trade higher this week given the surge in beef prices and sloppy weather but cash cattle traded in Texas at $128.00 which was steady against last week.
Boxed beef cutout values were already at the highest level since January 14th coming into the session before seeing further strong gains again on Wednesday.
However, traders believe the early weakness in futures might have sparked the steady trade in the cash market. Many futures traders were disappointed that cash traded steady this week and this helped to spark selling.
Bargain hunting emerged on the early break and April traded to as high as just 20 lower on the day into the mid-session before more selling emerged.
Traders believe fund traders were active sellers early today.
Cattle slaughter came in at just 115,000 head which was well below expectations which could be a signal of weak demand from the packer.
Boxed beef cutout values were up $2.08 at mid-session to $199.95 which is up from $185.57 last week at this time.
TheCattleSite News Desk