CME: Cattle Futures Post Gains Over a Dollar on Thursday03 May 2013
US - Live cattle futures gapped higher on the open and settled with gains of 47 1/2 cents to $1.17 1/2.
This was only good for a mid-to low-range close, however. Live cattle futures received a boost from the ongoing surge in boxed beef prices. Price gains this morning brought Choice cuts within 88 cents of the all-time high of $201.18, which was hit in October of 2013, write ProFarmer market summarisers.
June cattle closed sharply higher on the day but the market seemed to run out of buyers on the mid-session run up over 124.00 with futures giving back near 50 points of the rally into the close.
The market pushed sharply higher on the day into the mid-session led by record or near record trade in the cash market and the beef market, say CME experts.
Sluggish export sales on the week and fears we are closing in on a seasonal peak plus more talk that retail demand could be sluggish in the northern Midwest into the weekend helped to limit the advance.
Cash cattle traded as high as $131.00 in Colorado and $130.00 in Nebraska on Wednesday; both all-time highs. Some cattle traded in Kansas at $129.00, up $1.00 from last week. The stiff discount of futures to the cash market sparked fairly aggressive buying for June cattle.
Weekly U.S. beef export sales for the week ending April 18th came in at 15,900 metric tonnes, compared with the prior 4-week average of 13,700.
Cumulative sales for 2013 have reached 322,500 metric tonnes, down -6.0 per cent from last year's pace.
Choice boxed-beef cut-out values at mid-session were up $.81 from late Wednesday to $200.30 from $191.54 last week at this time.
Slaughter came in below trade expectations at 119,000 head.
TheMeatSite News Desk