Cattle Futures: Bearish Tone Hits Live Cattle, Thursday18 October 2013
US - Live cattle futures trading opened high with reports of bearish trade lifting contracts in all but the front month, which closed 15 cents down.
October live cattle closed on $129.025 cents as December cattle's buffer above $129 halved by yesterday's close to $129.150.
Profarmer analysts have said that early support came from confirmation of $128 to $129 cash cattle trade in Texas and Kansas, this represent steady trade to a $1 gain on last week.
Profit taking and talk of the overbought condition of the market plus concerns that consumers will shift to cheaper pork and poultry helped to pressure, write CME analysts.
Ideas that beef demand has been improving and news that cash cattle traded higher yesterday helped to support speculative buying early and a move to 134.00 for December cattle. Higher trade in the stock market and gold plus a sharp drop in the US dollar helped to support early.
Choice boxed-beef cut-out values (compliments of Urner Barry) were up 12 cents on the mid-day wire with select beef up 12 cents. Slaughter came in well below trade expectations at 116,000 head.
TheCattleSite News Desk