Cattle Futures - Hogs Tumble On Charts, Spreads, Pre-Roll

US - Chicago Mercantile Exchange lean hog futures closed sharply lower Wednesday due to chart damage, June/July bull spreading against advanced Goldman Roll activity and fund liquidation. Pork bellies finished down as well. The first of five days of the roll, which consists of funds shifting some of their spot-month June long positions into July and August, will officially begin Monday and is tied Goldman Sachs Commodity Index. CME live cattle closed weaker and feeders ended mostly firm.
calendar icon 3 May 2007
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Live cattle futures closed weaker amid spillover lean hog pressure, CBOT corn's runup, and resumption of midday boxed beef's downtrend.

Furthermore, a trader said, June and August were the "playground" for bull spreaders and Goldman rollers. "Rollers" refers to funds moving some of their spot June long positions into August ahead of the May 7-11 Goldman Roll period.

The live cattle action Wednesday jeopardizes possible steady to higher cash prices this week based on Friday's live basis sale up to $97 per hundredweight. Packer bids Wednesday were reported at $94 versus asking prices in the $99 to $100 range.

And, the U.S. Department of Agriculture's midday boxed- beef wire showed choice and select cuts down $1.43 and $0.77, respectively. Mother's Day is not a traditional occasion for beef, but it appears that retailers are buying products hand-to-mouth ahead of the Memorial Day holiday in a few weeks, a trader said.

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