Cattle Futures - Most Live Cattle Fades As Corn Rallies

US - After moving in positive territory for most of the session in part because of initial Chicago Board of Trade corn futures' losses, Chicago Mercantile Exchange live cattle settled mostly lower after CBOT corn rallied as the session progressed. Feeder cattle ended lower on the day.
calendar icon 16 May 2007
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Live cattle rose at the open on low electronic CBOT feedgrains trading, expectations of steady-to-better cash this week and continued gains by beef cutouts.

June buying abated as the contract approached the 40-day moving average resistance barrier. The August contract pulled back soon after eclipsing Monday's 93.55-cent high that was also a one-month top.

The board maintained earlier gains with help from midday choice and select boxed beef prices that were up $1.51 and $1.14. But live cattle contracts wilted when CBOT corn erased significant overnight losses.

Cattle traders await clues for this week's cash trade Wednesday and will monitor beef cutouts as wholesale meat buyers pad inventories for the Memorial Day holiday later this month.

Market bulls and bears alike are also mindful that the federal government's monthly cattle-on-feed report is slated for release Friday at 3 p.m. EDT.

RJ O'Brien bought June. Locals were on both sides of October. Fimat bought August and sold June outright.

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