Cattle Futures - Live Cattle Wilt

US - CME live cattle closed moderately lower on fundamental worries, spot Augustpre-expiration liquidation amid 86 deliveries posted by the exchange onTuesday, and CBOT corn's upswing as the session progressed.
calendar icon 9 August 2007
clock icon 1 minute read
In response to Tuesday's significant board losses and shrinking boxed-beefvalues, fed cattle buyers rolled back live-basis bids to $90 per hundredweightfrom earlier $91 money. Although some cash cattle owners are holding pat ataround $94, it was reported that a few sellers might give in at $92.

The U.S. Department of Agriculture's midday boxed-beef cutout wire onWednesday quoted choice cuts down $0.25 per hundredweight and $0.43 selectdrop.

August and October live cattle declines were exacerbated after both tradingmonths drifted beneath key moving average technical support floors that stirredfund selling and tripped sell stops.

And, August/October bear and October/December bull positioning exerted addedpressure on August and December but cushioned October's fall.

Thursday brings the cattle market a day closer to a possible negotiated pricethat pit traders believe will not take place until Friday. Those who remain inthe spot August contract will be on the lookout for additional deliveries. And,there is talk that longs are migrating out of October into December due toOctober's bloated open interest.

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