CME: Futures Close Week Down, Friday09 September 2013
US - Live cattle fluctuated on Friday, closing up 45 cents at $125.67 meaning losses for the week.
Analysts described the bullish cash market as fading through the week amid demand worries.
December cattle closed just slightly lower on the day and managed to see a solid recovery off of the lows. The market traded as much as 52 lower on the session into the pit opening but recovered to trade just slightly lower on the day into the mid-session.
Fears that cash cattle could trade steady/weak this week and ideas that the short-term supply is somewhat burdensome helped to spark the long liquidation selling.
The premium structure of the market adds to the long liquidation tendency for cattle. Weekly U.S. beef export sales for the week ending August 29th came in at 17,900 metric tonnes, compared with the prior 4-week average of 15,225.
Cumulative sales for 2013 have reached 560,400 metric tonnes, down 15.7 per cent from last year's pace.
Boxed-beef cut-out values at mid-session were down 63 cents to $195.23 from $195.71 last week.
Slaughter came in higher than trade expectations for the second day in a row at 125,000 head which can sometimes indicate strong demand from the packer.
TheCattleSite News Desk