Cattle Futures - Most Live Cattle Rally; Hogs Mainly Soft

US - Chicago Mercantile Exchange live cattle futures closedmostly higher on short covering, Chicago Board of Trade corn's major lapse andbear-spreading out of spot-June into August, October and December. That weighedon June but strengthened far months. Feeder cattle ended higher.
calendar icon 28 June 2007
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Meanwhile, lean hogs finished mostly weak, and pork bellies gained during thesession.

Followthrough selling, cash worries and deliveries pounded live cattlecontracts at the start that sank June to a 7 1/2-month low and August driftedto a five-month bottom.

June was also under pressure to liquidate before it expires Friday at 1 p.m.EDT (1700 GMT). Boxed beef cutouts late Tuesday appeared to have stabilized,but by midday Wednesday again trended weaker.

Nevertheless, futures inched their way up amid increasingly active spreads.Some August/October and August/December bull spreaders took on factions ofAugust longs rolling into October ahead of the official start of the Goldmanroll on July 9 through July 13. The roll is done in association with theGoldman Sachs Commodity Index.

Some traders in the cattle pit foresee more short covering on Thursday asmarket participants square positions before the end of the quarter on Friday.Also, pitsters who are planning extended Fourth of July vacations are alsoexpected to settle their affairs Thursday and Friday.

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