CME: Traders Favour Upside, Thursday20 September 2013
US - Traders were reported as favouring the upside ahead of the cattle on feed report which is expected to show figures down on last year. The day closed with live October cattle up 65 cents to $125.92
December cattle closed moderately higher on the day and experienced the highest close since September 4th, say CME analysts. Ideas that the short-term demand could come in a bit better than expected due to a more confident consumer has helped to support.
In addition, markets experts have reported traders seeing tightening supply ahead which could be confirmed by the USDA Cattle-on-Feed report on Friday.
Talk that longs had liquidation out of cattle on the sharp break into Tuesday added to the positive tone as traders believe that macro fund traders are now looking for commodities which have a tightening supply theme for the coming year.
Boxed-beef cut-out values at mid-session today came in at $193.21, down 8 cents from yesterday and still down from $193.85 last week. Weekly U.S. beef export sales for the week ending September 12 came in at 16,900 metric tonnes, compared with the prior 4-week average of 17,740.
Cumulative sales for 2013 have reached 596,100 metric tonnes, down 14.0 per cent from last year's pace.
Slaughter came in below trade expectations at 121,000 head.
TheCattleSite News Desk