Casey IL. ( I -70 ) then south on rt.49 | CATTLE MARKET COMMENTS
Live cattle futures closed higher on the day on weather concerns to continue to pose problems in terms of cattle and beef transportation with new longs coming onto the markets while shorts begin to cover. Momentum is gaining towards the upside as optimism is growing for steady-steady higher fed sales by the end of the week with packer’s short bought coming into the week plus added support by technical signals. An article released today by Reuters introduced the suggestion of “rolling” furloughs to lighten the ramification of cuts due to the sequester to alleviate furloughing meat inspectors all at once reducing concerns. Technically futures are showing signs of a correction with Feb and April closing over the pivot with support in April at the 12825 level and resistance at 13000. Midday wholesale beef prices are showed signs of support on light volume with choice at 183.25 +0.36 and 180.29 +0.10 with 93 loads trading. Estimated daily slaughter was 102,000 head giving a week to date of 192,000 with production expected to be light on account of poor weather conditions. Traders will be looking to buy April and sell June on a seasonal basis towards the end of the month. Feeder cattle futures closed higher on the day with shorts covering on technical trade and weather concerns slowing the cattle trade and supported by higher live cattle futures |
Higher cattle market
