Wed 01 May 2013 07:57:20 CT
A lack of new deliveries and a strong beef market are factors which have failed to provide much support as the focus of attention remains on the possibility that the weak consumer demand trend continues. A cool and wet forecast for the central part of the country into the weekend has helped to pressure. Boxed beef cutout values were up 17 cents at mid-session yesterday and closed $1.60 higher at $196.39. This was up from $191.41 the prior week and is the highest beef market since March 13th. A strong beef market may be enough to stabilize the cash market this week and this may provide some support for the discounted futures market. Cash bids emerged in Texas at $127.00 as compared with offers at $130.00 to $131.00.
June cattle closed 65 lower on the session yesterday and down 130 points from the early peak. Some talk of stressful conditions for feedlot cattle this week due to cold and snowy weather across parts of Colorado, Kansas and Nebraska helped to provide some support but fears of weaker consumer demand due to the cold and wet outlook into the weekend helped to pressure. The market saw choppy and two-sided trade in a 100 point range early and was trading moderately higher on the day into the mid-session.
Outside markets were mostly quiet but the sharp break in the US dollar index to the lowest level since February 25th may have helped support commodity markets in general. There were no new deliveries posted overnight. Slaughter came in higher than expected at 125,000 head which can sometimes point to strong demand from the packer. This brings the total for the week so far to 244,000 head, unchanged from last week at this time but up from 240,000 a year ago.
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