CME: Futures Pegged Back by Bearish Cattle on Feed Report,Monday23 April 2013
US - Live cattle futures closed 22 1/2 to 45 cents lower, which was a mid- to high-range close.
Cattle futures were influenced by last Friday's Cattle on Feed Report, which concentrated the heaviest losses in the October contract forward, write market analysts at ProFarmer. But those contracts pared losses into the close and finished high-range, suggesting the report data is now "in" the market. As a result, traders' attention should now shift to daily fundamentals.
June cattle closed 47 lower on the session and up 32 from the early lows. The market traded sharply lower into the pit opening following the bearish Cattle-on-Feed report from Friday which showed placements in March up 6 per cent from last year vs. trade estimates calling for a drop of 1-2 per cent, say CME experts.
The market seemed to hold support early and erased about half of the day's losses into the mid-day. The higher than expected placements leaves a few more cattle available for the market this summer.
The 6-10 day forecast is above normal for temperatures for the central part of the country and this may have helped to provide some underlying support. In addition, the stiff discount to the cash market and ideas that consumer demand might get a boost from the better weather in the forecast beginning this coming weekend helped to support.
More talk of furloughs for meat inspectors for later this year was seen as a negative factor as well as the "uncertainty" over the impact continues to spark long liquidation selling. Texas cattle traded $126.00 on Friday.
Boxed-beef cut-out values at mid-session were up $.74 to $190.84 as compared with $189.89 last week at this time.
Slaughter came in above trade expectations at 121,000 head which could be a sign of better demand from packer.
TheCattleSite News Desk