CME: Futures Settle Mid to High With April Low, Thursday08 March 2013
US - April live cattle settled low-range and 50 cents lower on Thursday, while the rest of the market settled mid- to high-range with gains of 30 to 55 cents, write Profarmer experts.
The front-month contract saw some light selling into the close as traders worked to bring it in line with yesterday's cash trade at mostly $128. Cash trade is now thought to be largely complete in Texas and Kansas, though additional sales are expected in Nebraska.
April cattle closed near 50 lower on the session and near the lows of the day after choppy and two-sided trade early. June closed a bit higher and managed to take out Wednesday's highs while April held inside of yesterdays session, write CME analysts.
There is some talk that cattle which were backed-up from the storms may move over the near-term which helped pressure the nearby contract.
The market found some light support from the higher hog market to trade slightly higher on the session into the mid-day.
The found some early support from a solid recovery in weekly export sales news and from a surge in beef prices this week which might attract higher trade in the cash market next week.
Weekly U.S. beef export sales for the week ending February 28th came in at 15,400 metric tonnes, compared with the prior 4-week average of 10,775.
Cumulative sales for 2013 have reached 205,000 metric tonnes, down -6.4 per cent from last year's pace.
Cattle slaughter came in slightly below trade expectations at 119,000 head which was well below expectations and could be a signal of weak demand from the packer.
Boxed beef cutout values were up $.69 at mid-session to $196.77 which is up from $186.16 last week at this time.
TheCattleSite News Desk