The dataimply industry expansion in the coming months despite expensive feedgraincosts. Pork bellies ended limit down, with July and August posting new contractlows. Meanwhile, live cattle closed moderately lower and feeders weak.

Chicago Mercantile Exchange live cattle finished moderately lower inpre-holiday directionless trading that at times mostly featured bear-spreadingout of front-months into rear contracts. Also, August longs moved into Octoberin advance of the coming Goldman roll period.

Additionally, October was the beneficiary of bull-spreading into the contractout of December and February despite unimposing Chicago Board of Trade cornfutures.

Live cattle vacillated at the start as traders sifted through last Friday'ssteady $87 per hundredweight fed cash trade and beef cutouts that seemed tohave stabilized. Choice and select boxed beef cuts on Friday were uneven whilemidday quotes on Monday showed both categories up during the session.

Spot-August lost its footing after slipping beneath nearby 20-day, thensubsequent 10-day moving average support floors. And, October retreated aftertesting the 40-day moving average resistance impediment.

Nevertheless, short covering and the prospect that packers might put steadyto possibly better money on the table this week for fed cattle encouragedbreak-buyers. Contrarily, there was skepticism regarding boxed beef's perceivedrecovery and CBOT feedgrain's withdrawal.

August live cattle finished under the 89.86-cent 10-day and 90.05-cent 20-daymoving averages. October closed beneath 94.84-cent 40-day moving averageresistance.

Rosenthal was on both sides of August and cited as an August/October bearspreader. RJ O'Brien sold August and October. Locals were cited as being onboth sides of October. Fimat was among August sellers.

Feeder cattle ended weak on live cattle pressure, earlier profit-taking bylongs and August/September bear spreading. That, along with short covering andnarrowly mixed CBOT feedgrains, lifted most feeder cattle contracts fromsession lows.

August live cattle settled at 89.67 cents a pound, down 60 points. Octoberended at 94.47, a loss of 25 points.

August feeder cattle finished 60 points lower at 110.95 cents, Septemberclosed down 5 points at 111.80 cents.

Source: FXSTREET