CME: Futures At the Highest Level Since May Sixth, Wednesday27 June 2013
US - June live cattle futures finished 12 1/2 cents higher and low-range, closing up to $121.27. Deferred months closed 50 cents to $1.05 higher and on or near session highs on Wednesday.
Fundamental support for live cattle futures remains lacking as Choice boxed beef prices continue to slide and cash cattle trade is still uncertain for the week, writes ProFarmer.
But traders are starting to sense a short-term low for the cash and product markets is nearing. As a result, buying interest is starting to perk up.
August cattle closed 105 higher on the session and experienced the highest close since May 2nd. The market also took out Tuesday's highs, write market analysts at the Chicago Mercantile Exchange.
Futures pushed lower on the session into the pit opening but active speculative buyers helped drive the market higher even with the recent weakness in the beef market.
Ideas that the showlist is smaller this week and ideas that the weather looks a bit more conducive to improving consumer demand in the next few weekends helped to support the buying.
In addition, a firm tone to the stock market and to recent US economic news added to the positive tone.
Weakness in the beef market helped to pressure the market on Tuesday but the more optimistic demand tone has futures back up near Tuesday's highs and the highest level since May 6th.
Boxed-beef cut-out at mid-session came in at $196.33, down $1.24 on the day and down from $198.98 last week at this time.
Slaughter came in right on trade expectations at 123,000 head.
TheCattleSite News Desk