Cattle Futures - Live Cattle Surge

US - CME live cattle futures closed higher aided by short covering, fund buyingand end-July positioning that drove several contracts to new highs. Octobermade a new contract high of 100.00 cents and December's 101.00-cent price is afresh monthly high.
calendar icon 1 August 2007
clock icon 1 minute read
Also, bullish traders appeared to muster confidence on strengtheningwholesale beef demand, and after October and December lean hog's sudden sprintto fresh monthly tops.

However, beef futures initially succumbed to profit-taking pressure,especially after December and February inched their way upward to new contracthighs on Monday.

Also, August and October's bearish overbought Relative Strength Indexconditions, and overnight-Chicago Board of Trade corn's slight uptick, wasenough to sideline potential far-month live cattle buyers at the start.

Nevertheless, the board's initial pessimistic mood gave way to optimism afterAugust cleared Monday's 94.40-cent high on the way to a 5 1/2-month top.Spot-August received added support from the federal government's midday boxedbeef wire that showed choice and select cuts gained another $1.40 and $1.03,respectively.

"Fed cattle owners no doubt are beaming about future's performance onTuesday," a broker said. "But, there is still plenty of time, and anything canhappen between now and when cattle trade hands later this week."

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.