Cattle Futures - Fundamentals, Funds Rack Cattle, Hogs
US - Chicago Mercantile Exchange live cattle futures settled lower Wednesday on caution ahead of this week's cash cattle trade, floundering boxed-beef values and spillover from lean hog's sell-off. Feeder cattle also closed lower.
7 June 2007
1 minute read
Live cattle sagged on the open due to Tuesday's weak boxed-beef values, June and August technical resistance and speculation that a few head of dressed cattle in Nebraska late Tuesday sold $3 per hundredweight lower than a week ago.
Fund selling surfaced and sell stops were tripped as June and August drifted downward. And, usually stubborn bulls cast their lot with bears when it was confirmed that Nebraska dressed cattle moved early Wednesday $2 below week-ago sales.
What's more, the U.S. Department of Agriculture's midday beef wire on Wednesday showed choice and select cuts shed another $1.23 and $0.25 of their value.
"There is nothing fundamentally or technically that would make me think we can recover from this (Wednesday's action)," a veteran cattle broker said. "Our only saving grace would be if shorts cover or people think that selling was overdone."
Source: FXSTREET
