CME: Zilmax Effect 'Muted' as Close Range Futures Close Down, Friday12 August 2013
US - Live cattle futures closed mixed today with August closing down 17 cents $122.50 through to December all finishing slightly lower and farther-deferred contracts posting slight gains.
For the week, live cattle futures posted gains thanks to Thursday's sharp gains, write market analysts at ProFarmer.
Feeder cattle finished slightly lower amid light profit-taking. Traders are still waiting on solid proof of a seasonal low in the cash cattle and boxed beef markets. Until lows are in place, buying interest in live cattle futures will be limited.
October cattle closed lower with an inside trading day but up sharply from last week's close of 124.47, write experts at CME.
The market was trading 35 higher on Friday, into the pit opening, but failed to get close to Thursday's highs and pushed lower on the day into the mid-session.
Ideas that other packers have not followed Tyson in banning Zilmax has caused traders to feel that the overall impact may be muted. The premium of futures to the cash market, 30 new deliveries, weaker beef prices overnight and cash cattle bids in Texas at just $117.00, down $2.00 from last week were other factors to spark some selling into the mid-day.
Uncertainty over where cash will trade this week helped to keep the trade choppy.
Boxed-beef cut-out at mid-session were up $0.18 to $188.49 and still up from $187.21 last week at this time.
TheCattleSite News Desk