Cattle Futures: Trading Ends Lower After Choppy Trade, Monday08 October 2013
US - October live cattle closed down 17 cents at $127.87 after a choppy trading day as other contracts closed 12 1/2 to 35 cents lower yesterday.
December cattle finished 12 cents lower at $132.3003 after a market managed to match Friday's highs into the pit opening but could not see follow-through buying and pulled back to trade 20 lower on the day into the mid-session, write CME analysts.
The market remains in a steady uptrend but the sharp drop in the stock market today has helped to bring about some concerns over consumer confidence which could cause sluggish beef demand if the government shut-down continues.
The stiff premium of futures to the cash market with cash at $125.00-$126.00 last week helped to spark some long liquidation selling as well.
The following information is compliments of Urner Barry. The showlist this week is noticeable tighter in Texas and a little higher for Nebraska.
Traders believe asking prices in Texas will be near $128.00 early this week. Packers may trim their slaughter schedule this week due to poor operating margins.
Mid-day wholesale beef prices were up 1 cent for choice grade to $192.16 with select beef $176.67.
TheCattleSite News Desk