CME: Futures Finish Mixed with June Up 50 Cents26 June 2013
US - Live cattle futures expanded on Monday's narrow trading range and finished narrowly mixed, closing up 50 cents to £121.15 for June.
The market is still waiting for direction from the cash market. Meanwhile last week's cash sales took place mostly around $120 in the Southern Plains and at $120.50 to $122 in northern locations. August futures are trading close to that price range.
August cattle closed slightly lower on the on Tuesday after first pushing to a new high for the move and the hook reversal is seen as a negative technical development by some traders. The market pushed moderately higher on the session early today and backed-off to trade just slightly higher on the day into the mid-session. The rally pushed the market up to the highest level since May 6th.
There were 10 deliveries against the June contract but this was not unexpected with June holding a premium to last week's cash. Traders see a firm tone to cash markets this week after some strength in select beef prices in the past week and talk of a smaller showlist this week.
Talk of strong packer margins added to the positive tone.
Boxed-beef cut-out at mid-session came in at $198.41, down 84 cents on Tuesday and down from $200.24 last week at this time.
Select beef was up 33 cents to $186.91 from $184.39 last week.
Slaughter came in slightly below trade expectations at 123,000 head.
TheCattleSite News Desk