CME: December Cattle Finished Lower Wednesday05 September 2013
US - December cattle closed 20 lower on the session but up 47 points from the mid-session lows.
The market traded near unchanged on the day into the pit opening but a steady flow of long liquidation selling helped to drive the market moderately lower on the day into the mid-session. Ideas that the short-term supply is adequate to meet demand for the next several weeks may have been a factor to spark the selling.
Traders believe the showlist is a bit smaller this week and cash markets are bid at $122.00 with offers at $125.00 and higher. Traders see the market as overbought basis traditional technical indicators, basis the COT reports and basis the premium structure. Strength in the stock market failed to provide much support.
Boxed-beef cut-out values at mid-session came in at $196.48, up 38 cents on the day and up from $196.09 last week at this time.
Slaughter came in slightly higher than trade expectations at 124,000 head.
Live cattle futures faced pressure for much of the session, but the market did settle high-range with losses of 7 1/2 to 20 cents. Traders worked to narrow the premium the front-month holds to last week's steady cash action at $123. Early cash market clues signal feedlots may have a slight advantage, as showlist estimates are down and beef movement has improved to start the week.
TheCattleSite News Desk