CME: Cattle Futures Close Slightly Higher, Monday30 July 2013
US - Live cattle futures closed 5 to 30 cents higher today, though that was on or near session lows. August cattle increased 30 cents to $122.1.
Cattle futures were supported on Monday by a firmer tone in the Nebraska cash cattle market late Friday, write ProFarmer analysts.
That gives traders some hope the cash market has put in a seasonal low and firmer prices will be seen this week.
The market saw an impressive bounce early Monday but closed just slightly higher on the day, say CME analysts.
October cattle was trading slightly higher into the pit opening but speculative buyers turned active and the market was up as much as 82 higher shortly after the opening.
Ideas that cash and beef prices have bottomed and will begin to push higher soon has helped to provide underlying support. This has offset the poor trade in beef prices on Friday and the sluggish trade in cash cattle last week at $119.00.
The rally pushed the market to a 4-session peak. There is some concern that the stiff premium of futures to cash will cause feedlots to feed out cattle to higher weights in hopes of higher cash prices just ahead but speculative buyers have remained active on set-backs.
Boxed-beef cut-out values at mid-session came in at $186.52, down $0.63 on the day and down from $188.98 last week at this time.
Slaughter came in higher than expected at 122,000 head which can sometimes suggest better than expected demand for live inventory from the packer.
Showlist supply looks significantly higher in Nebraska this week, up slightly in Texas and down slightly in Kansas.
While traders expect cash to trade higher this week, the showlist is higher than last week and beef prices are lower.
TheCattleSite News Desk