Cattle Futures: Prices Drop Amid Report Anticipation, Wednesday31 October 2013
US - Futures moved lower yesterday with contracts from December onwards finishing 75 cents to $1.15 lower. October live cattle closed at $133.35, down 5 cents.
December led the decline as the market positioned ahead of the October Cattle on Feed and Cold Storage Report, which has limited trading.
This is according to ProFarmer analysts who also noted a quiet trade day for cash cattle.
December cattle traded a bit higher early but failed to attract new buying interest and the market set-back to trade moderately lower on the day into the mid-session.
Talk of the short-term overbought condition of the market and news that some US beef exports were found tainted with growth enhancers again this week helped to spark some long liquidation selling.
Choice boxed-beef cut-out values at mid-session came in at $205.31, up $1.07 from yesterday and up from $200.79 last week.
Positioning ahead of the cold storage and Cattle-on-feed reports for release tomorrow after the close helped to keep the trade choppy.
Traders see October 1st on-feed supply down near 7.2 per cent from last year. Placements for September up 1.2 per cent from last year and marketings during September up near 4 per cent from last year.
Slaughter came in well below trade expectations at just 114,000 head.
TheCattleSite News Desk