Wed 20 Feb 2013 15:31:14 CT
April cattle closed sharply lower on the session and did not recovery off of the mid-session lows like hogs and other markets. News that cash cattle traded in Texas at just $123.00 was seen as a negative factor. The market saw choppy and two-sided trade early in the day as traders saw the uptick in beef prices and the weather forecast for the plains as potentially supportive forces. In addition, boxed-beef sales volume was very large yesterday and is seen as a positive force. Selling emerged to drive the market sharply lower. While grain markets were firm, traders noted sharp drops in gold, silver, copper, crude oil and other energy markets plus stock market weakness as signs of weaker commodity markets and this may have added to the negative tone. April cattle collapsed to test the February 14th lows into the mid-session. Traders were taking a wait and see attitude for the weather and beef stability news but further weakness in hogs and other commodity markets may have been enough to spark another round of long liquidation selling from speculators. Cash traded at just $123.00 last week and news of steady trade came as a disappointment to many traders. Boxed-beef cut-out values at mid-session today reached $182.91, up $.44 from yesterday and up from $183.45 last week at this time. Slaughter came in higher than expected at 122,000 head which is sometimes a positive indicator.
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