CME: August Cattle Finish Week Unchanged, Friday08 July 2013
US - Live cattle futures ended the day and week mixed as traders reevaluated positions as August cattle closed unchanged on 121.95.
August live cattle are trading at around a $3 premium to this week's $119 cash cattle trade, write ProFarmer analysts. With cash sources reporting only moderate cash trade this week, packers have the upper hand in next week's negotiations unless the boxed beef market strengthens.
August cattle closed unchanged on the day and down just 7 points for the week, say experts at CME. The market saw choppy to lower trade early today as a surging US dollar help to provide a bearish tilt to many commodity markets.
Weakness in the cash market last week is seen as a bearish force but the market found some support from higher trade in the beef market late Wednesday. Economic news for the US remains positive and the strong employment news this morning was seen as a positive demand development.
Weekly U.S. beef export sales for the week ending June 27th came in at 12,400 metric tonnes, compared with the prior 4-week average of 13,700. Cumulative sales for 2013 have reached 425,500 metric tonnes, down 17.2 per cent from last year's pace.
Some talk that cash cattle might trade higher this afternoon helped to support.
Boxed-beef cut-out values at mid-session came in at $196.63, down $1.10 from yesterday and compared with $197.38 last week.
Select beef was down $.45 to $188.63. Slaughter came in below trade expectations at 120,000 head.
TheCattleSite News Desk