CattleFutures - Cattle Complex, Hogs Mixed; Bellies Down

US - Chicago Mercantile Exchange live cattle futures on Tuesday closed mixed on June/August bull-spreading that was ultimately out-muscled by pre-Goldman Roll business. Feeder cattle finished mostly weak.
calendar icon 2 May 2007
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The roll, which consists of funds shifting some of their spot-month June long positions into August, will officially begin on Monday and conclude on Friday and is done in conjunction with the Goldman Sachs Commodity Index.

Meanwhile, CME's lean hog contracts closed mixed, and pork bellies settled in the red.

Live cattle started the session mostly lower due to profit taking by longs after Monday's board rally, overnight electronic-CBOT hogs' initial advances and talk that Monday's cattle rally was unwarrented.

On the other hand, the prospect that cattle owners might receive no-less-than steady money for their animals this week based on last Friday's trade spurred break-buying. Scale-down purchasing increased due to CBOT feedgrain's momentary opening lapse, improving boxed beef cutout values and June's bounce off 20-day-moving-average support.

Nevertheless, spot-June retreated to the 20-day moving average support level by day's end due to the tide of June longs that migrated into August which finished above 40-day moving-average support.

Boxed beef will be monitored on Wednesday to see if the pickup in recent wholesale beef business can be maintained into midweek. Also, more cattle buyers and sellers are expected to show their hands on Wednesday with respect to bids and asking prices.

Rosenthal bought June and sold August outright. RJ O'Brien was among August buyers. ADM sold June.

Feeder cattle closed mostly weak in line with live cattle's uneven finish, CBOT corn pressure, August/September bear spreading and underlying supportive charts.

June live cattle settled at 93.87 cents per pound, down 25 points, and August ended at 92.72, a gain of 12 points. May feeder cattle finished up 20 points at 109.75 cents, and August closed down 25 points at 112.60.

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