Cattle Futures - Live Cattle Buckle

US - CME live cattle closed lower on profit taking following Tuesday's rally tonew contract highs, and after October and December spiked to fresh 100.15 and101.10-cent monthly highs during Wednesday's open.
calendar icon 2 August 2007
clock icon 1 minute read
Fund selling, August/October and August/December bear spreading andfront-months' overbought chart overbought chart conditions compounded losses.

Some said word that S. Korea received a shipment of U.S. beef that containedbanned material might have put cattle futures buyers on the defensive.Meanwhile, several traders cited the meltdown in the financial markets andother commodity sectors as another possible source for live cattle's bearishperformance.

In any event, live cattle contracts lost ground despite positive fundamentalinfluences and as CBOT corn contracts withered as the session wore on.

The U.S. Department of Agriculture's midday boxed beef cutout wire quotedchoice cuts up $1.40 per hundredweight and a $1.44 select price increase. And,packers upped bids for live-basis fed cattle to $91 per hundredweight versusasking prices that topped $96.

While bullish live cattle traders price cash cattle this week in excess oflast week's $91 to $91.50 sales, there remains some anxiety among bearishparticipants about remaining trading months' premiums to the August contractand compared with recent fed cattle business.

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