CME: Futures Close Higher, Wednesday19 September 2013
US - Analysts were reporting beef demand concerns which pressured the market, leaving October live cattle fractionally up at the close at $125.275.
December cattle closed sharply higher on the day as news of a lack of tapering from the government sparked aggressive buying late in the day, write analysts at CME.
"A sharp drop in the US dollar and new all-time highs for the stock market helped to support the market on ideas of better demand," said CME analysts.
The market traded moderately lower on the day early today but support held above yesterday's lows. February cattle closed moderately higher on the day as well and the outside-day-up is seen as a positive technical development.
For the Cattle-on-Feed report on Friday, traders see on-feed supply on September 1st near 94 per cent of last year.
Many traders see August placements down about 8 per cent from last year but some estimates are for higher placements than last year.
Marketings are expected near 96 per cent of last year. Retail beef prices climbed up to another new record high level for August, up 3.7 cents from July to $5.394 per pound.
Good rains across parts of the western and southern plains should help ease drought and improve pasture and range condition. This could push down non-fed and cow slaughter in the weeks ahead.
Boxed-beef cut-out values at mid-session today came in at $193.30, up 29 cents from yesterday and still down from $193.93 last week.
Slaughter came in slightly below trade expectations at 123,000 head.
TheCattleSite News Desk