Fund buying and midday wholesale beef price strength lifted CME live cattle. Cattle contracts began the session on relatively solid footing after buying from Monday’s futures advances carried over into Tuesday.
Bullish traders also priced in what that think will be no worse than $90- per-hundredweight cash-cattle prices, based on profitable beef packer margins and Tuesday’s wholesale beef buying interest rush.
Cash-basis cattle bid from packers cropped up at $89 to $90 per hundredweight versus $93 to $94 offers from cattle sellers. Fed cattle last week sold for $91 to mostly $92.
Futures made a bullish statement after spot-April overshot the 10-day moving average resistance target with the help of spreading into the contract out of deferred months. Actively-traded June surpassed recent highs on the way to a nine-month top.
April and June also touched off buy orders what were waiting above the market.
Far cattle months finished positively on spreading into December out of October. Plus, the weak dollar underpinned distant cattle contracts because of the implication for improved beef exports ahead.
April live cattle closed up 105 points, or 1.1%, at 92.77 cents. June ended up 65 points, or 0.7%, at 91.25 cents.
Feeder cattle finished higher on live cattle’s upturn and more buying after futures’ steep run up Monday.
Steady-to-stronger cash feeder cattle prices, and spreaders who bought May and sold March, contributed for market advances that launched all months except March to new contract highs.
Source: www.cattlenetwork.com
