August cattle gave back all of Monday's gains and more with a substantial selloff and a close near the daily lows. Indications that the showlist is higher this week, and that cash cattle could be weaker during the near future put pressure on the market. A stronger US dollar was also seen as a negative factor for cattle futures but strength in gold and the stock market was thought to have provide some underlying support. While the short-term supply and demand outlook may not be seen as supportive by many traders, a shift towards a more positive outlook for the economy and some hope that the Euro zone could begin to show some stability has helped to improve outside market forces this week. Supply is still expected to tighten during the July/September timeframe but with much higher than normal weights, slower exports and higher imports, the per-capita supply of beef during the next month may come in higher than expected. The higher trade in the beef market this week has some traders looking for further strength in the cash market. However, boxed beef cutout values were up 33 cents at mid-session yesterday and closed $1.22 lower at $196.40. This was up from $195.74 the prior week. Slaughter came in at 127,000 head which was a little lower than expected and could mean sluggish demand from the packer. This brings the total for the week so far to 250,000 head, up from 133,000 head last week at this time but down from 253,000 head a year ago.
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