Cattle Futures - Live Cattle Mixed; Hogs Mostly Weak

US - Chicago Mercantile Exchange live cattle futures settledmixed. June and August closed up slightly on cash cattle and short covering.
calendar icon 11 June 2007
clock icon 2 minute read
June/August bear spread (where traders sell June and buy August) andAugust/October bull spread (where traders buy August and sell October) at timestrimmed June's gains and, along with unpredictable Chicago Board of Trade cornmovement, pressured October and remaining trading months.

Feeder cattle closed lower.

Lean hogs ended mostly weak and while most bellies settled firm.

In true pre-weekend position-squaring fashion, live cattle vacillatedthroughout the morning. Spot-month traders also attempted to price in cattle asword of $91 per hundredweight prices trickled into the pits.

On the other hand, June buyers were not overly enthusiastic about pushing upthe contract amid concern that the retail-meat buying business for Fathers Daymay be at an end. Also, the usual seasonal tendency for futures to bleed lowerinto the summer because of ample supplies has long-position holders on edge.

Outside of evaluating this week's cash trade and showlists on Monday, marketparticipants will have little else to draw from other than technical indictors.

June and August contracts were oversold coming into Friday's trade based ontheir Relative Strength Index (RSI) charts. However, a cattle broker pointedout that is not an unusual situation given the way cash and cutouts broke afterthe Memorial Day holiday.

Locals bought October and sold August outright. Rosenthal bought June andsold August. Cadent Financial was among August buyers. RJ O'Brien sold October.Fimat was among August sellers.

Feeder cattle posted a lower settlement on fund selling, sell stops,technical pressure and indecisive CBOT feedgrain trading.

June live cattle settled at 89.72 cents per pound, up 5 points. The contractearlier dropped to a four-month low. August ended at 89.60, a gain of 7 points.

August feeder cattle finished 65 points lower at 108.20 cents, and Septemberclosed 57 points lower at 108.17.

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