Cattle Futures - Live cattle futures closed firmer

US - Live cattle futures closed firmer on short covering, Friday's cattle trade that was consistent with last week's sales, and June-bull spreaders taking on spot-month longs rolling into August ahead of Monday's Goldman Roll.
calendar icon 7 May 2007
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June and August's oversold Relative Strength Index situations, and ideas the recent board liquidation was overstated, laid a foundation beneath the market before the open. What's more, bullish traders were motivated by less-threatening CBOT corn contracts.

With this week's cash business wrapped up, traders on Monday will focus on showlists and beef cutouts values that were rather soft midday Friday. The U.S. Department of Agriculture quoted choice cuts off $0.03 and select down $0.28.

The Goldman Roll is expected to command considerable attention from bulls and bears alike. Some traders admitted that they will observe the proceedings from the perimeter of the pit to avoid potential choppiness.

Technically, June's upside potential on Monday may be hampered by the contracts settlement on Friday below 100-day moving average support.

Locals and Fimat bought June and August outright. Rosenthal was among August and October buyers. Man Financial sold October.

Feeder cattle futures closed mostly weak on live cattle and May/August bull spreading that underpinned spot-May feeders while August/September bear positioning and technical issues dogged remaining trading months.

June live cattle settled at 92.17 cents per pound, up 45 points, and August ended at 90.87 cents, a gain of 30 points. May feeder cattle finished up 20 points at 107.15 cents, and August closed down 37 points at 109.27.

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