October cattle closed slightly higher on the session yesterday, as an upside turnaround in the stock market and ideas that cash cattle will trade higher this week were widely seen as supportive factors. The market pushed sharply lower for the session early to a 3-session low, as continued weakness in the stock market and fears of weakening global economic conditions were seen as pressuring the market. October futures are holding a high premium to the cash market and beef prices have fallen to their lowest levels since June 17th. Cash cattle bids emerged at $108.00 this week with offers at $112.00-$113.00. Cash traded $108.50 last week and with October futures at $118.50, some traders feel it will be important to see higher cash trading this week. Boxed beef cutout values were up 8 cents at mid-session yesterday and closed 26 cents lower at $173.51. This was down from $175.73 the prior week. The estimated cattle slaughter came in at 127,000 head yesterday. This brings the total for the week so far to 380,000 head, down from 385,000 head last week at this time and down from 382,000 head a year ago.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.