CME: Futures Closed Mixed With April Lower, Wednesday12 September 2013
US - Live October cattle closed 2 1/2 cents higher on Wednesday as April futures closed lower.
December cattle closed slightly lower on the yesterday but down 55 from the early highs and experienced the lowest close since August 7th, write CME analysts.
The market traded as much as 52 higher on the session into the pit opening, however, speculative long liquidation selling emerged with trade uncertainty over weather or not the market can hold onto a significant futures premium to the cash market.
Some short-covering emerged early in the day with an optimistic demand tone due to recent exports news and talk of a shift to more normal temperatures in the central part of the county. In addition, there is still a more optimistic tone toward the positive impact on the market once beef supply begins to tighten into the 4th quarter.
The market was trading just slightly higher on the day into the mid-session. In addition, there is talk of declining cow and non-fed cattle slaughter and the impact of declining on-feed supply.
Traders indicated bids emerging in the cash market at $121.00 with no offers yet as compared with $123.00 trade last week.
Boxed-beef cut-out values at mid-session were up 15 cents to $193.88 from $196.56 last week.
Slaughter came in right on trade expectations at 123,000 head
TheCattleSite News Desk