Cattle Futures: Close Contracts Make Gains, Friday21 October 2013
US - Nearby futures finished higher while deferred futures reported losses on Friday with contracts steady to 72 1/2 cents higher.
December cattle saw choppy and two-sided trade early today with a small range and an inside trading session. The market was trading near unchanged on the day into the mid-session.
Analysts at ProFarmer said: "After six straight weeks of strength in the cash cattle market, traders sense a short-term cash top is close."
The sweeping reversal yesterday has traders nervous of a further sell-off if yesterday's lows at 131.32 are penetrated, report analysts at CME. In addition, a close under 132.47 today would represent a weekly closing price reversal and further confirmation (from a technical perspective) of a near-term top.
Ideas that beef production will push down to near 5 per cent under last year into November and December has helped to support.
Choice boxed-beef cut-out values from the USDA on the mid-day wire came in at $195.41, down 62 cents from yesterday.
TheCattleSite News Desk