Cattle Futures - Live Cattle Ends Mostly Firm; Hogs Gain

US - Chicago Mercantile Exchange live cattle futures closed mostly firm on short covering, Chicago Board of Trade corn's retreat and bear-spreading out of spot-June into August and October. That, along with trailing midday boxed beef quotes and cash uncertainty, weighed on June and supported August and October.
calendar icon 30 May 2007
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Feeder cattle closed higher, hogs gained on the day and bellies finished mostly firm.

Live cattle's opening rise was owed to shorts covering positions after last week's losses, front-months' oversold chart indicators and CBOT corn prices that were lower after traders' returned from the extended Memorial Day holiday weekend.

However, June and August board buying at times sputtered due to considerable technical resistance and uneasiness about cash and beef cutout prices for this week.

Futures will continue to lack cash leadership on Wednesday as buyers and sellers evaluate showlists. And live cattle longs anticipate a post-holiday beef cutout snapback due to grilling, while bears argue that outdoor cooking in parts of the country was rained out that could further weigh on wholesale beef demand.

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