CME: August Live Cattle Closes up 10 Cents, Wednesday15 August 2013
US - Live cattle futures ended 2 1/2 cents higher with August futures up 10 cents to $124.00. Far-deferred contracts finished slightly lower.
While traders are hopeful cash cattle prices will move higher again this week amid much tighter showlist supplies and profitable margins, nearby futures already hold a $3 premium to last week's trade, which limited buying yesterday say market analysts at ProFarmer.
The market managed to close slightly higher on the day after choppy and two sided trade, write CME analysts.
December cattle managed to push to the highest level since April 1st overnight but failed to find new buying interest this morning and traded as much as 50 lower on the day before recovering late.
Higher beef prices might have sparked the late recovery bounce. Ideas that the cash market may be able to trade higher this week helped to support the market early.
A lack of new news on the Tyson/Zilmax issue is considered bearish news from some traders as traders believe that if other packers do not follow the lead of Tyson that the impact on weights and production will be minimal. There were no new deliveries overnight.
Asking prices in the cash market are at $123.00-$124.00 this week as compared with $121.00 trade last week.
CME commentators say there are still no bids from packers. A surge higher in hogs helped to provide some underlying support yesterday.
Boxed-beef cut-out values at mid-session came in at $191.95, up $1.63 on the day and up from $188.66 last week at this time.
Slaughter came right on trade expectations at 123,000 head.
TheCattleSite News Desk