US - June cattle closed 182 lower on the session and this left the market down 77 points for the week.
There was talk that a large packer was selling futures in hopes of signally a potential high in the cash market this week which could provide an opportunity to secure more cash cattle next week at a lower price.
Cash prices this week hit a record high in many regions. The market experienced some choppy and two-sided trade early in the day but the inability to take out yesterday's highs in the face of bullish economic news in the US and a one-week, 4.7% surge in beef prices to near all-time highs helped to spark the aggressive long liquidation selling. This pulled the market down from yesterday's peak and technical selling late drove futures down to a poor close.
There is still some uncertainty over consumer beef demand and some traders viewed the market as a bit overbought after the recent rise. Some traders were also disappointed that the futures could not move much higher this week even with the strong surge in cash cattle and beef prices to record or near record highs.
Boxed-beef cut-out values at mid-session were up 27 cents to $200.85 as compared with $192.89 last week at this time. This is just shy of the all-time highs of $201.18 posted in October of 2003.
Slaughter came in near trade expectations at 118,000 head for today and 18,000 head for tomorrow for a total on the week at 624,000 head, down 1,000 from last week and down 3,000 from last year.
TheCattleSite News Desk