CME: Futures Show Little Change for the Week22 July 2013
US - Live cattle futures ended the Friday mostly weaker ($121.97) down 12 cents, but posted little net change for the week.
Meanwhile, feeder cattle futures posted slight daily gains and strong gains for the week due to weakness in the corn market and tightening calf supplies, reports ProFarmer.
This afternoon's Cattle on Feed Report was about as expected. While the Marketing figure came in above trader's guesses, On Feed and Placements were right in line with traders' expectations to give the report a mostly neutral read.
October cattle closed 25 points lower on the session but still managed to close 15 points higher for the week, say analysts at CME.
The market was down as much as 77 lower on the day shortly after the pit opening but futures recovered to trade just slightly lower on the day into the mid-session.
Texas and Kansas cash cattle traded steady with last week at $119.00 on Friday. With poor demand weather all week, some traders saw the steady trade as somewhat positive and there was more and more talk that demand could improve with a sharp drop in temperatures expected by the weekend.
Positioning ahead of the Cattle-on-Feed report for release after the close may have added to the choppy tone. For the month of June, traders see placements of cattle onto feedlots down about 5 per cent from last year.
Marketings are expected to be down near 4-5 per cent from last year which will leave July 1st "on-feed" supply down about 3 per cent from last year.
Boxed-beef cut-out values at mid-session were up 21 cents to $189.51 as compared with $191.53 last week at this time.
Volume of boxes traded reached 244 loads on Thursday from 141 the previous day and this was also seen as a positive development.
The results of the report could set the tone for early next week.
TheCattleSite News Desk