CME: Futures End Mostly Lower, Friday05 August 2013
US - Live cattle futures ended the day mostly lower, but posted moderate to sharp losses for the week closing down 15 cents for August to $120.65.
Feeder cattle futures saw light profit-taking pressure today, but ended firmer for the week, say ProFarmer . News of $119 cash cattle trade to start the day weighed on live cattle futures, but trade picked up at $120 in the Southern Plains, which is $1 higher than last week.
October cattle closed 1 tick lower on the session and down 137 for the week. News that Kansas Cattle traded at $120.00, up $1.00 from yesterday and up $1.00 from last week failed to provide much of a boost as the market drifted lower into the close, write analysts from the CME group.
The market traded as much as 40 lower ahead of the pit opening and pushed down to the lowest level since June 21st.
However, a bounce in grain markets, a continued recovery in hog values and ideas that the market is oversold ahead of the weekend helped to support a bounce to trade slightly higher into the mid-session.
News of increasing steer weights, fears of deliveries against the August futures next week and ideas that beef production could remain high over the near-term helped to pressure the market this week. In addition, traders expected higher cash cattle trade this week coming into the week but cash traded steady at $119.00.
Traders remain hopeful that cash cattle could turn higher into the fall and there is also talk that beef demand will begin to pick-up for Labor Day holiday specials.
Boxed-beef cut-out at mid-session were cents higher to $186.78 from $187.15 last week at this time.
Rising open interest on the break this week suggests that the overbought condition of the market may be already corrected.
TheCattleSite News Desk