Cattle Futures - Most Live Cattle Weak

US - CME live cattle ended mostly weak on August/October bear spreads, some ofwhich were traced to cleanup Goldman roll business, and October/December bullspreads that undergird October but pressured December. The Goldman rollconsists of longs moving their August positions into October in accordance withGoldman Sachs Commodity Index guidelines.
calendar icon 17 July 2007
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Friday was the last official day for the Goldman roll for live cattle and hogfutures, but additional business is expected to linger into the middle of theweek because of sizable open interests in both pits.

Also, speculative spot August cattle traders priced in the possibility ofsteady fed cattle returns for this week given last week's cash cattle tradethat brought upward of $91.50.

August's fluctuation between 10-day moving average support and 100-day movingaverage resistance confined the contract to a narrow trading range throughoutmost of the session. What's more, uneven midday boxed-beef quotes, and Augustand October's overbought Relative Strength Index charts capped front-monthadvances.

All is quiet in the Midwest and Plains as packer cattle buyers and sellersappraise this week's showlists. In the interim, live cattle futures' bulls andbears alike will look to boxed beef and CBOT corn for near-term fundamentaldirection.

Technically, August live cattle slipped beneath 91.47-cent 10-day movingaverage support. And, October settled over the 96.11-cent 10-day movingaverage.

RJ O'Brien bought October and sold December outright. Cadent Financialpurchased October and December. Man Financial was on both sides of October.Fimat sold August and bought October in post-Goldman roll activity.

Feeder cattle ended up sharply on short covering, CBOT feedgrains' limitdrop, and fund buying. Buy stops, and August/September and September/Novemberbull positioning hastened advances.

August live cattle settled at 91.35 cents per pound, down 27 points. Octoberended at 96.35 cents, a gain of 5 points.

August feeder cattle finished 130 points higher at 115.15 cents a pound.September closed 110 points higher at 115.77 cents.

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