CME: Futures End High Thanks to Favourable Outside Markets17 April 2013
US - Live cattle futures saw a choppy day of trade, but futures ended high-range with gains of 32 1/2 to 62 1/2 cents with Texas and Iowa cash cattle trading at $125.
Ideas the downside had been overdone and highly favorable outside markets helped short-covering to overtake followthrough selling yesterday, write ProFarmer analysts.
In addition, traders have had a buy-the-fact reaction to the start of light cash cattle trade at $125 in Texas and Iowa on Monday, which is down $2 from the week prior but in line with front-month futures.
June cattle closed moderately higher on the day with plenty of help from a more positive tone for commodity markets and a sharp break in the US dollar, say experts at CME.
The market saw some lower trade early in the session but managed to hold support above Tuesday's lows and traded moderately higher on the day into the mid-session.
Sharply higher trade in the stock market and a turn higher in gold and other commodity markets helped to support. The stiff discount to the cash market helped to spark some buying as well. Ideas that the market was oversold on the sharp break to new contract lows may have also contributed to the strong recovery but the rally seems to have stalled out just under Tuesday's highs.
A lack of deliveries so far against the April contract added to the positive tone. News that a few cattle traded in Texas at $125.00 late yesterday helped to pressure the market.
Cash was mostly $127.00 last week.
Boxed-beef cut-out values at mid-session were up 29 cents to $190.18 as compared with $191.41 last week at this time.
Slaughter came in right as expected at 122,000 head.
TheCattleSite News Desk