CME: Futures Finish Higher Both Short and Deferred, Wednesday13 June 2013
US - Live cattle futures traded in a narrow, choppy range today and ended 17 1/2 cents lower in June and August futures and 10 to 50 cents higher in deferred contracts.
This was a mid- to high-range close. The cattle market has chopped sideways throughout the week as the market is uncertain about cash prospects this week, write ProFarmer experts.
August cattle closed near unchanged on the day after choppy and two-sided trade while December closed slightly higher, CME market analysts.
The market traded higher overnight but could not get over Tuesday's highs and futures set back to trade slightly lower on the day into the mid-day. The USDA supply/demand update showed a revision higher of 330 million pounds (up 1.3 per cent) from last month for the 2013 beef production.
Exports were revised lower by 100 million pounds to 2.312 billion pounds.
Traders were a bit disappointed with the mixed trade in the beef market on Tuesday with choice down from last week but select beef prices higher than last week and this is leaving cash traders with little in the way of direction expectations.
On the other hand, the discount of futures to the cash market and the positive margins for packers plus record heat into the plains on Tuesday are seen as short-term positive forces.
Boxed-beef cut-out values at mid-session came in at $202.20, down $.79 from Tuesday and compared with $204.40 last week at this time.
Select beef was up 59 cents to $184.75 from $184.56 last week. Some traders are leaning to a steady tone for the cash market this week while bears point to a weak tone to the June futures today as a reason to suspect lower cash trade.
Slaughter came in well below trade expectations at just 117,000 head.
TheCattleSite News Desk