Cattle Futures: Live Cattle Rise On Cash Ideas, Fund Buys

US - Chicago Mercantile Exchange live cattle futures closed moderately higher Thursday on speculation regarding this week's cash direction, spotty buying by institutional investors and April/June, June/August and August/October bull spreading.
calendar icon 23 March 2007
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April attracted buyers after the contract punched through 20-day moving average resistance. And far-month live cattle closed in positive trading as Chicago Board of Trade corn slipped into negative territory prior to live cattle's settlement.

Spot-April closed up 67 points at 98.40 cents a pound.

Most-active June finished 42 points higher at 95.35 cents.

Live cattle dropped on the open after choice and select boxed beef shed more than $2 of their values on Wednesday. Both beef categories remained under pressure midday Thursday, but that didn't stop board buyers who were driven by the notion that April is under-valued compared with the possibility of no worse than steady cash sales for this week.

On Friday, trader caution could develop ahead of the U.S. Department of Agriculture's monthly cattle-on-feed data. Also, market bulls and bears alike will wait to see whether cattle buyers and feeders will reach a deal before the cattle complex shuts down for the weekend.

JP Morgan was among June buyers. Rosenthal was among April buyers and was on both sides of June. Locals were counted as June sellers.

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