Posted On: 06/10/2016
By Cassie Fish, http://cassandrafish.com
CME cattle futures have traded within the confines of Monday’s range all week. At this moment, the market is higher than last Friday’s close, though confidence is sketchy as to where the market will be at the close. Futures are balancing between moving averages and act just good enough, to stave off selling and keep bulls hopeful.
In the cash market, bids are beginning to surface, with more trade occurring for late June and early July than for next week thus far. Cash has traded $126-127 for further out. For next week, in the north, a bid of $207 from one smaller player has been picked up while another supposedly bought a few at $210, while a major, who is thought to need cattle for tomorrow’s schedule kill, is still laying in the weeds at $203. South, $128 is bid by more than one major and has been passed. At this point trade may, or may not, break loose before futures close. Last week’s 5-area average was $129.29 and cash certainly has the feel of fully steady at this juncture.
Boxes have gained ground all week, the loin and rib primals and beef 50s have led the charge and both the choice and select cutout have put on over $3 from a week ago. All reports are beef business has been quite good. Seasonally a top in boxes is expected next week.
All in all, after Monday’s start, Friday’s action is better than expected as the strength in fundamentals has pulled futures back and held them together. This week’s slaughter is still expected in the 580k-585k.