CME: Cattle Closed Higher on Friday16 September 2013
US - December cattle closed 52 higher on the session and this left the market up 12 points for the week.
The market inched higher overnight and is trading slightly higher on the session into the mid-day. The market managed to trade over 129.00 early today but could not hold with cash markets down at $123.00.
Beef prices have been steady over the past few days and news that cash traded steady this week helped to support the bounce.
Ideas that the break to the lowest level since early August this week may leave the market oversold helped support the buying.
For the monthly update yesterday, the USDA raised 2013 production by 55 million pounds but this was more than offset by a revision higher for exports of 45 million and a revision lower for imports by 85 million pounds.
For 2014, production was revised up by 20 million but imports were revised down by 100. The USDA news was a net positive for price.
Boxed-beef cut-out values at mid-session were down 7 cents to $193.86 from $195.86 last week.
Slaughter came in below trade expectations at 105,000 head. Beef production for the week was at 486.9 million pounds which was down 5.8% from last year.
TheCattleSite News Desk