Cattle Futures - Cattle contracts end weaker

US - CME live cattle contracts ended weaker on profit taking by longs, August and October's increasingly-bearish overbought chart conditions, and CBOT corn'srally. Also later in the session, August longs moved some of their positions into October in earnest ahead of the last day for the Goldman roll Friday.
calendar icon 13 July 2007
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Live cattle futures initially gained on rising boxed beef cutout prices and bullish speculation regarding this week's cash direction following Wednesday'sfed cattle business. That, and lean hog's unexpected limit jump, emboldened live cattle traders who bought August and sold October on spreads.

However, more sellers than buyers entered the market as CBOT corn gained ground. And, August's spike to a 7 1/2-week top, and October's three-monthhigh, was too much for already nervous bullish traders to stomach -particularly given board premiums to last year's futures prices.

Profit-taking on Thursday included traders who wanted to beat the rushFriday, a broker said. Also, scattered $90-per-hundredweight live-basis fed cattle sales Thursday were a sign to some in the pit that packers may bedigging in at steady money compared with last week's trade.

August ended above 91.73-cent 100-day moving average support.

Rosenthal bought October outright and was among August/October rollers.Alaron Trading Corp. bought December. Locals bought October and December. Cadent Financial and RJ O'Brien sold October. Fimat was among October sellers.

Feeder cattle ended lower on profit-taking after again making new contract highs earlier in the session, live cattle's spill from session tops and CBOT'sfeedgrain run up.

August live cattle settled at 92.12 cents per pound, down 12 points, and October ended at 96.52 cents, a loss of 22 points.

August feeder cattle finished 32 points lower at 114.30 cents after spiking to a 117.00-cent fresh contract high. September closed 90 points lower at114.70 and pulled back from an earlier 117.40-cent new contract high.

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