CME: Cattle Futures Mixed on Tuesday17 July 2013
US - Live cattle futures closed mixed Tuesday, up 12 to down 32. Feeder cattle futures were mostly 2 to 27 higher, with spot August 10 lower. Lean hog futures were 35 to 80 higher.
October cattle closed moderately lower on the day with an inside trading session. The close near the lows, however, could attract some long liquidation selling ahead with talk of an overbought condition and the premium of futures to the cash market.
The market saw choppy and two-sided trade early in the session today as demand fears clash with the outlook for tightening supply ahead. This weeks showlist is smaller in the central plains and Midwest which has helped to support the market on continued talk that a seasonal low may already be in place.
Speculative buyers have remained active this week in spite of the weakening demand signals as consumer demand could be slow due to very high heat index readings on the East Coast and the Midwest for much of the week.
The corn rally helped to pressure feeder cattle futures early in the day and this added to the negative tone. A sell-off in the US dollar may have given commodities a little support.
Boxed-beef cut-out values were down 30 cents at mid-session to $190.40. Beef prices are lowest since April 23rd. Slaughter came in well above trade expectations at 123,000 head which could be a sign of strong demand from the packer.
TheCattleSite News Desk