CME: Futures See Profits But August Down 30 Cents, Thursday16 August 2013
US - Live cattle futures faced light profit-taking pressure yesterday following Wednesday's gains. But price action was muted as traders wait on cash trade to begin.
Packers and feedlots are still several dollars apart on cash negotiations, raising the likelihood of cash trade late tomorrow afternoon. Traders still expect $1 to $2 higher cash trade with last week's $121 trade due to tighter showlists, write ProFarmer experts.
December cattle closed lower after choppy and two-sided trade, say CME commentators.
The market saw some strength ahead of the pit opening but a sharp sell-off in hogs and weakness in the US stock market helped to turn the market lower and trade 30 lower on the day into the mid-session.
It was an inside trading session. Traders see the higher beef trade this week and a few less cattle in the showlist as a reason to suspect higher trade in the cash market this week.
Cash markets are bid at $119.00 with offers at $123.00-$124.00 as compared with $121.00 trade last week.
Boxed-beef cut-out values at mid-session came in at $193.05, up $.70 on the day and up from $188.31 last week at this time.
Weekly U.S. beef export sales for the week ending August 1st came in at 8,900 metric tonnes, compared with the prior 4-week average of 14,025.
Cumulative sales for 2013 have reached 490,500 metric tonnes, down -17.7% from last year's pace.
Slaughter came right near trade expectations at 123,000 head.
TheCattleSite News Desk