CME: Futures Settle Higher After Choppy Wednesday04 April 2013
US - Live cattle futures settled slightly higher following a choppy day of trade, write market analysts at ProFarmer.
Most contracts ended near the middle of Wednesday's range. Cash cattle trade unexpectedly got started at $128 in the Texas, Oklahoma and Kansas early this afternoon, which gave futures a boost into the close.
Still, traders resisted pushing April live cattle futures above the initial cash trade, signaling they have ongoing concerns with beef demand.
June Cattle just 37 higher on the session and near the middle of the range and saw an inside trading session. Just after the close, Texas traded $128.00, steady to up $3.00 from last week and Kansas cash cattle also traded at $128.00, write experts at CME.
The market saw choppy and two-sided trade early on Wednesday and inched higher on the day into the mid-session. Advancing beef prices of the past few sessions and talk of warmer temperatures in the Midwest into the weekend and beyond helped to support.
Colder than normal weather now and ideas that cash markets may remain sluggish in the short-term helped to pressure. Traders seem to be waiting for a more definitive tone for the cash markets for this week before turning too aggressive on either side of the market.
Ideas that packers have the option for April contracted cattle added to the uncertainty for the cash market. Others see improving demand and tightening supply as a reason for higher trade in cash market.
Boxed-beef cut-out values at mid-session on Wednesday came in at $192.00, up $.58 from yesterday and up from $189.96 last week at this time.
Slaughter came in below trade expectations at 118,000 head.
TheCattleSite News Desk