Cattle Futures - Cattle, Pork Complex Ends Higher
US - Chicago Mercantile Exchange live cattle futures closed higher Monday on April/June bear and June/August and June/October bull spreading. The Chicago Board of Trade corn's lower trade provided added live and feeder cattle lift as market participants await this week's cash trade.
1 May 2007
2 minute read
Live cattle's opening rise was spurred by carryover buying, depressed CBOT feedgrains and speculation about this week's cash cattle trade after Friday's better-than-expected finish. While the spot April live cattle contract was trapped in a tight range ahead of its 1 p.m. EDT expiration, prospective buyers flocked to June because of the contract's discount to most recent cash transactions.
What's more, June's opening gap higher attracted funds, tripped buy stops and rolled through the 20-day moving average resistance barrier. Mixed midday boxed-beef quotes further emboldened cattle market bulls looking for another reason to wade into the market on the last day of trading for the month of April.
Tuesday is shaping up to be a typical early week trade as CBOT corn and boxed beef take center stage until cattle bids and asking prices materialize around midweek.
Technically, June settled above the 20-day and August over 40-day moving average support.
Rosenthal bought June and August. RJ O'Brien bought June and sold August outright. Man Financial was among August buyers.
Feeder cattle closed up sharply on live cattle advances, chart backing, CBOT corn's retreat and May/August bear spreading.
April live cattle settled at 97.27 cents per pound, up 7 points, June ended at 94.12, up 85 points and August closed 57 points higher at 92.60 cents. May feeder cattle finished 100 points higher at 109.55 cents, and August closed 137 points higher at 112.85.
Source: FXSTREET
