DJ CME Cattle Review: New Highs On Late Spreading, Beef, Snow
US - Chicago Mercantile Exchange live and feeder cattle futures closed higher Monday, with deferred month live cattle contracts boosted by late spreading. June, October, December and April 2008 all made new contract highs.
13 February 2007
1 minute read
February live cattle ended up 50 points at 93.70 cents per pound. March feeders closed up 72 points at 99.50 cents
Most-active April ended higher in an outside day on charts. February was supported by snow falling in cattle-feeding areas and sharply higher midday wholesale beef prices as packers raised their products prices.
Cash-connected traders said part of the beef increase came in conjunction with buying from areas of the U.S., which were predicted to see the impact of a storm now winding through the Plains.
But, despite the new highs, volume was very low other than the spread activity, according to pit sources. Also, after the close, the CME reported twenty-eight certificates of intention to deliver cattle were submitted.
June versus April spreads supplied much of the business, with some brokers saying the action was in anticipation of a the movement of April longs tied to the Goldman Sachs commodity index into June, which is slated to commence in early March.
Source: FX Street.com
