Cattle Futures - Live Cattle, Hogs Hit Multi-Month Lows
US - Chicago Mercantile Exchange live cattle futures closedlower, with June and August dropping to multi-month lows, on spot-Juneliquidation outright or through spreads before the contract expires on June 29.Cash caution, Monday's deliveries and pre-Goldman roll business hastenedlosses. Feeder cattle also finished on a down note.
27 June 2007
1 minute read
Meanwhile, lean hogs and pork bellies posted sizable losses.
Live cattle contracts stumbled out of the gate on Monday's persistent boxedbeef declines, talk that recent board setbacks might jeopardize cash returnsfor this week, and Chicago Board of Trade corn's rally in overnight trading.
June live cattle's preparation to exit board trading on Friday and 23deliveries against the contract exacerbated spot-month losses. And August,which will assume lead-month status following June's expiration, was pressuredby the contract's premium to June and compared with last week's fed cattleoutcome.
Bullish live cattle traders were stunned by word on Tuesday that a lightnumber of dressed cattle in Nebraska moved $3 to $5 per hundredweight belowlast week's dismal sales.
"That could really take the bloom off August and the rest of fed cattlemarket even more heading into the weekend," a broker said.
Source: FXSTREET
