Cattle Futures - Hogs Fall On Commercials, Funds, Stops

US - The Chicago Mercantile Exchange lean hog futures closed lower on commercial and fund sales, sell stops and June technical support loss. Pork bellies also finished lower amid spillover lean hog pressure. Meanwhile, live cattle futures closed lower and feeder cattle ended mixed after spot-month April expired from trading at 1 p.m. EDT.
calendar icon 27 April 2007
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Live cattle futures closed lower on negative fundamentals, bear-spreading out of front cattle months into rear contracts, and periodic April and June technical resistance.

It was reported that $96-per hundredweight was the price paid for cattle on a live basis in Texas, which was consistent with the bulk of last week's trade. Other cattle owners in the Plains, however, are passing on $96 to $96.50 bids in the hope of snagging at least $97.

Front-month live cattle buying was also minimized by results of the U.S. Department of Agriculture's midday meat wire that showed choice cuts dropped $1.50 and select slid $1.28.

The current cash situation and April live cattle's upcoming expiration on Monday spawned spreading out of the spot-April contract into June and August trading months. June/August, August/October and October/December bear positioning were also common.

Some traders are expected to even up positions on Friday as they await further cash developments and before Monday, the last trading day of the month.

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