CME: Futures Close Up Reaching Two Week High, Wednesday28 March 2013
US - Live cattle futures rallied into the close to finish $1.22 1/2 to $1.82 1/2 higher, write ProFarmer analysts.
Futures found early support from news of steady cash cattle trade in Texas at $125 on Tuesday, as traders had anticipated lower trade due to ongoing weakness in the boxed beef market.
Futures extended gains on anticipation of follow-up trade of at least steady if not $1 to $2 higher due to smaller showlists.
June Cattle closed 182 higher on the day and pushed up to the highest level since March 14th, according to reports from the Chicago Mercantile Exchange.
The market saw choppy and two-sided trade into the pit opening but managed to find significant buying support and futures were trading sharply higher into the mid-day.
Traders believe the cash market may be in a position to see higher trade next week and beyond and this helped to support. Traders indicate that cash cattle moved at $125.00 this week in Texas but there are still no bids or offers at other locations.
Talk of improving temperatures for grilling weather after a few days of cold in early April plus talk that the West Cost, especially the northwest turns warmer and drier than normal next week helped to support.
Poor packer margins and sluggish beef prices have helped pressure the market over the past few weeks but the discount of June to the cash plus talk of better weather ahead has helped to support.
Boxed-beef cut-out values at mid-session came in at $190.07, down 36 cents from Wednesday and down from $193.41 last week at this time.
Beef prices are hovering near the lowest price level since March 1st. Volume, however, has picked up over the past few days.
Slaughter came in slightly below trade expectations at 119,000 head.
TheCattleSite News Desk