CME: Futures Favour Downside, Monday25 June 2013
US - Live cattle futures finished 15 to 47 1/2 cents lower, which was on or near session lows.
Futures mildly favored the downside in light trade to start the week as traders factored in Friday's Cattle on Feed and Cold Storage data. While the Cattle on Feed data was slightly negative compared to the average pre-report trade guesses, it was not bearish, which limited selling pressure, write ProFarmer experts.
August cattle closed slightly lower with a quiet inside trading day, write market experts at CME.
The market pushed lower early in the session and was down as much as 50 points on the day into the mid-session before a bounce to trade just slightly lower on the day late.
The USDA reported higher than expected placements of cattle onto feedlots in May which was considered bearish to the October futures. With placements of cattle weighing 800 pounds or higher at a record high for the report, traders were also negative for the August contract; especially after the surge higher in prices on Friday ahead of the report.
For the monthly cold storage report, frozen beef stocks as of the end of May came in at 478.5 million pounds which is down 3.9 per cent from last year and also down 6.2 per cent from last month.
Stocks typically decline by about 1.5 per cent for the month so the report was considered supportive and showed stronger than expected demand to pull from frozen supply in May. Talk that a small number of cash cattle traded in Texas at $120.00 helped to provide underlying support.
The showlist this week looks about steady with last week in Texas but a bit smaller in Nebraska.
Boxed-beef cut-out at mid-session came in at $199.10, down 29 cents on the day and down from $201.49 last week at this time.
Select beef was up 82 cents to $187.04 from $184.03 last week. Slaughter came in well below trade expectations at 114,000 head.
TheCattleSite News Desk