CME: Futures Close Higher, Wednesday02 May 2013
US - Live cattle futures ended 30 to 65 cents higher, but that was only good for a mid-range close.
A strong surge in boxed beef prices yesterday morning fuelled buying interest throughout the day in live cattle futures, write experts at ProFarmer.
But the late trimming of gains signals traders still have concerns about the long side of the market despite the big discount summer-month contracts hold to the cash market.
June cattle closed 60 higher on the session as traders see the jump in beef prices this week as a positive sign for the cash market ahead. In addition, the discount of futures to the cash market may have helped to support, say CME analysts.
The market traded lower on the day early this morning following many commodity markets down as global economic concerns persist. In addition, cold and wet weather demand concerns persist and this helped to push the market down to a 4-session low.
However, continued strength in boxed-beef values and solid demand from the packer has helped support the market today with futures up 130 points on the day into the mid-session. Boxed beef cutout values were up to $196.39 late yesterday, up from $191.41 one week ago.
Cash bids emerged in Texas at $127.00 as compared with offers at $130.00 to $131.00. Talk of a smaller showlist this week added to the positive tone.
Choice boxed-beef cut-out values at mid-session were up $2.51 to $198.90 from $191.54 last week at this time.
Slaughter came in higher than expected at 125,000 head which can sometimes point to strong demand from the packer.
TheCattleSite News Desk