Cattle Futures - Live Cattle contracts ended weaker

US - CME live cattle contracts ended weaker after August/October forward spreading was overcome by August longs that shifted into October in Goldman roll fashion.
calendar icon 16 July 2007
clock icon 2 minute read
Uncertainty about the fate of unsold fed cattle this week, August'soverbought chart condition and midday boxed beef's weakness further weighed onthe spot contract. And as August lost subsequent 100-day moving average support, CBOT corn's late day push took some of the starch out of far-monthlive cattle trading months.

As of the futures close, packer bids for live-basis cattle awaiting ownership stood at $88 to $89 per hundredweight. Those who look to make the exchange areasking $92 to $94.

And, the U.S. Department of Agriculture's midday boxed- beef wire showed choice cuts dipped $0.37 per hundredweight and select slipped $0.16.

Friday's cash price results will be high on traders' priority list on Monday,especially with USDA cattle reports scheduled later in the week. Market bulls and bears alike are also expected to keep close tabs on boxed beef to see whether Friday's misstep was an aberration or harbinger of things to come.

August live cattle closed between 91.36-cent 10-day moving average support and 100-day moving average resistance. October ended over 95.95-cent 10-daymoving average support.

Rosenthal bought October outright and was among August/October rollers. Cadent financial bought December. RJ O'Brien sold October. Man Financial was among August sellers. Locals sold December.

Feeder cattle ended weaker on spillover live cattle pressure,August/September bear spreads, and CBOT feedgrain's late session upturn. August feeder's overbought chart situation and front-month premiums' to CME's feedercattle index were contributing negative factors.

August live cattle settled at 91.62 cents per pound, down 50 points, and October ended at 96.30 cents, a loss of 22 points.

August feeder cattle finished 45 points lower at 113.85 cents. September closed 2 points weaker at 114.67 cents.

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