CME: Futures Finish Week Stronger Ahead of Cattle on Feed Report, Friday23 September 2013
US - Trading ended up ahead of the Cattle on Feed Report on Friday resulting in a two cent lift in October cattle, closing at $125.95. Analysts say the report and the week's pricing suggests a short-term low.
December cattle closed 1 tick higher on the session and this left the market up 60 points for the week, sat analysts at the CME. The market traded slightly higher on the session and up to the highest level since September 4th into the mid-session.
Positioning ahead of a USDA report which could confirm tightening supply ahead helped to support the market, report CME experts. The premium structure of the market seems to be limiting the advance as cash cattle has not traded this week yet but traded $123.00 last week.
Sluggish trade in beef prices and weakness in the stock market today are also seen as negative forces.
Boxed-beef cut-out values at mid-session today came in at $192.45, down 56 cents from yesterday and down from $192.69 last week.
Weakness in hogs and uncertainty over the report results has helped to keep the trade choppy.
Slaughter came in above trade expectations at 121,000 head. Beef production for the week reached 505.5 million pounds, up 3.8 per cent from last week and up 1.3 per cent from last year.
The results of the Cattle-on-Feed report and cash market results for this week should set the tine for next week.
TheCattleSite News Desk