Cattle Futures - Live Cattle Climb

US - CME live cattle futures closed higher on cash strength, bull spreads intospot August out of rear trading months, and short covering. Also, speculativebuyers pushed December to a 110.10 contract high that, some in the pit pointedout, was also an all-time high for the trading month.
calendar icon 30 July 2007
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The exchange's initial posting of February's 100.00-cent price, that wouldhave been a fresh monthly high, was later thought to have been a mistake, atrader said.

Contrary to mixed pre-opening expectations, live cattle contractsunexpectedly leaped after the opening bell on word that dressed cattle bids inNebraska were $2 per hundredweight higher than Thursday's $140 trade.

Futures floated upward as shorts scrambled to cover previously heldpositions, fund buyers pounced and fed cattle sales in parts of the Plainstrickled in at $91.50. What's more, midday boxed beef's gradual improvement wasviewed as a supportive live cattle market influence.

Nonetheless, beef futures finished down slightly from highs of the day aslongs claimed profits before the weekend. And, there were sentiments that theboard had already priced in most of Friday's cash price action.

Monday could bring additional profit-taking by those looking to settle theiraccounts as the last trading day of the month looms. Also, with this week'scash cattle trade in the books, bulls and bears alike will wipe the slate cleanand evaluate fed cattle business for the week ahead.

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