CME: Futures Falter Through the Week as Feed Outlook is Bearish13 May 2013
US - Live cattle futures ended slightly higher in all but the front-month June contract on Friday. Futures posted sizable losses for the week.
Recent price action suggests traders fear the run-up to record highs in Choice boxed beef won't last long and signals demand remains a concern, write ProFarmer analysts.
June cattle traded mostly lower for the session but the deferred December cattle managed to show some late strength, say market experts at CME.
The new crop feedgrain outlook carried a bearish tilt and the weakness in grains along with weakness in other key commodity markets helped to pressure.
Ideas that consumer demand will come down due to record high beef prices has kept the market on the defensive.
A combination of some rain in the southern plains this week and cheaper feedgrain prices by the fall could help slow cow and non-fed cattle slaughter into the summer and this may have helped to provide some underlying support.
Ideas that a colder and wetter trend for this weekend might limit consumer demand for beef has added to the negative tone.
Boxed-beef cut-out values at mid-session came in at $205.55 which is up $.06 on the day and up from $201.68 last week at this time and a new all-time high.
The USDA report was considered bearish for the cattle as 2013 beef production was revised higher by 214 million pounds and exports revised lower by 13 million but this was more than offset by a revision lower of 177 million pounds for pork exports.
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