CME: Slaughter Down as Augusts Cattle Rises to10 July 2013
US - Live cattle futures spent time on both side of unchanged, but finished 17 1/2 to 70 cents higher on Tuesday which led to a 65 cents lift in August cattle which closed on $122.72.
That was good for an upper-range close and bullish reversals for the day, write staff at ProFarmer.
Traders are still waiting on signs of bottoming action in the boxed beef and cash cattle markets, which is limiting buying interest, especially with futures at a premium to last week's cash trade.
Live Cattle closed strong after a trading in a wide range on Tuesday. The August, October and December contracts all formed outside days and had strong closes, which bodes well for continuation to the upside, say CME analysts.
The market may have been under pressure earlier from disappointment over the recent softer trend in the boxed beef cutout, which fell to its lowest level since April 29th on Monday.
The choice cutout fell another 40 cents to 194.45 this morning, but the select cutout was up 57 cents.
Monday's COT report showed a strong buying trend on the part of trend-following funds, which is supportive.
Tuesday's estimated cattle slaughter came in at 124,000 head, versus 126,000 a week ago and 129,000 a year ago.
TheCattleSite News Desk