CME: June Cattle at $122.02 on Monday09 April 2013
US - Live cattle futures closed 25 to 52 1/2 cents higher in the 2013 contracts, with 2014 contracts down 2 1/2 to 25 cents.
Nearby futures were supported by ideas last week's losses were overdone, with traders reevaluating positions and keeping a close watch on demand. But if the boxed beef market is disappointing to start the week, selling in futures will return as traders remain concerned about demand, say analysts at Profarmer.
June cattle closed 52 higher on the session at 122.02 from lows posted today and again on Friday at 121.30. The market saw choppy and two-sided trade early today before buying emerged to support a rally into the mid-session. June traded as much as 92 higher on the day before a set-back, write experts from CME.
The sholist is smaller this week but packers are backing away from the market and cutting back on kills. Traders continue to "wait" for confirmation of better demand for the grilling season to show up in boxed-beef prices before allowing June and August cattle to reduce some of the stiff discount to the cash.
The East Coast warms up this week and traders see "above normal" temperatures to hold for much of the next two weeks.
Packers appear to be cutting back on kills due to poor margins and this cut-back is likely to continue until beef prices move up significantly.
Boxed-beef cut-out values at mid-session today came in at $191.09, down 23 cents from Friday but up from $190.53 last week at this time.
Slaughter came in below trade expectations for the second session in a row at 116,000 head as it appears packers are backing away from the market in an attempt to support margins.
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