Cattle Futures - Hogs, Live Cattle Drop On Fund Sales

US - Live cattle contracts posted steep losses on fund selling, outside marketupheaval and spillover lean hog pressure. Sell stops, initial chart supportloss and cash cattle price disappointment contributed to beef futures' retreat.
calendar icon 17 August 2007
clock icon 1 minute read
Cattle contracts stumbled out of the chute amid profit taking by longs afterrecent gains and purging by funds. Also hog market participants, who tradecattle futures, liquidated some of their live cattle positions to off-set hoglosses.

Before the live cattle market opened there were sentiments that this week'scash trade, and the upcoming cattle-on-feed report, had already been factoredinto the market.

However, Thursday's board debacle left some in the pit wondering how themarket will react on Friday to further cash cattle developments, and on Mondayafter the report's release late Friday.

"Cash might be a lost cause at this point after the way futures acted"Thursday, a broker said. "By the same token, the report could have a much morebullish tone to it if the placement figures come in on the low side ofestimates."

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