CME: Futures Close Up, Finishing on $119.82, Monday18 June 2013
US - Live cattle futures ended 62 1/2 to 92 1/2 cents higher through the April 2014 contract, which was a high-range close for most contracts with June closing at $119.82.
Live cattle futures were boosted by corrective buying on Monday amid ideas the downside has been overdone, say ProFarmer analysts. Funds were also buyers yesterday, an indication they may feel a short-term low is in place.
August cattle closed 80 higher on the session but down 110 from the mid-session peak, write CME experts.
The market saw choppy to mostly lower trade early today and was trading near unchanged on the session into the mid-day with a 40 point range.
However, futures surged higher as traders see the jump in beef today as a sign of better than expected weekend demand. The market tested Friday's lows and held support before the mid-day bounce which pushed the market up to test last week's highs.
Cash cattle traded $2.00-$3.00 lower on the week at $120.00 on Friday and with the recent slide in beef prices, traders do not seem too optimistic that the cash market can stabilize or even trade higher.
The COT report on the weekend showed a minor spec selling trend as traders reduce their net long position and the open interest confirms a slowly eroding market.
The discount of futures to cash and the ability of the market to hold above Friday's lows is seen as a short-term positive development.
Boxed-beef cut-out values at mid-session were up $1.80 to $201.33 as compared with $203.18 last week.
Slaughter came in right on trade expectations at 123,000 head.
TheMeatSite News Desk