CME: Futures Trade in Narrow Range, Wednesday04 July 2013
US - Live cattle futures traded in a very narrow range as position squaring dominated ahead of the holiday Thursday with August cattle closing up 5 cents to $121.95.
Futures closed steady to slightly higher with August up 5 cents, closing near the day's lows, and December up 52 1/2 cents, closing near the day's highs, write ProFarmer analysts.
Futures were on hold for much of the day awaiting direction from the cash market.
August cattle closed just 5 points higher on the day and well off of the mid-session peak, write market analysts at CME.
The market traded near unchanged on the session into the pit opening but saw enough speculative buying support to trade moderately higher on the day into the mid-session.
Traders were waiting signals from the cash market but after Kansas traded $1.00 lower on the week at $119.00, the buying slowed and the market gave back all of the early gains. Cash bids emerged in Texas and Kansas on Tuesday at just $117.00 as compared with cash trade at $120.00 last week.
With a smaller showlist and higher select beef prices for the week and a full week of slaughter next week, traders were hoping to see steady to higher trade in the cash so the lower trade was seen as a sign of weak demand.
Boxed-beef cut-out values at mid-session came in at $198.08, up 98 cents from Tuesday and compared with $196.51 last week. Select beef was up $2.01 to $188.63.
Slaughter came in slightly higher than trade expectations at 125,000 head.
TheCattleSite News Desk