CME: Futures Gain A Dollar, Wednesday30 May 2013
US - Live cattle futures traded higher all day Wednesday and closed moderately to $1.00 higher, which was near the day's highs.
Choice boxed beef moved higher on Wednesday after weakening Tuesday and movement improved to suggest demand is holding up better than expected, write analysts at ProFarmer.
Traders have worried record high beef prices would meet consumer resistance following the Memorial Day holiday.
June cattle closed moderately higher on the session and experienced the highest close since May 3rd. December cattle closed 80 higher and also highest close since May 3rd, write CME experts.
Ideas that the near record high beef prices could spark enough incentive for packers to pay at least steady and maybe even higher for cash cattle this week has helped to support the rally. Strong consumer sentiment readings on Tuesday continued to provide underlying support.
Cash cattle traded mostly $124.00 last week and traders expect to see $126.00 offers and maybe $122.00 bids developing Tuesday. Ideas that packers will need more cattle for a full slaughter week next week has helped to support.
Boxed-beef cut-out values at mid-session came in at $209.89, up $1.35 on the day but down from $210.66 last week at this time.
Slaughter came in higher than expected at 126,000 head which can sometimes suggest strong demand from the packer.
TheCattleSite News Desk