Cattle Futures - Bellies Fall

US - Live cattle futures closed mostly lower after a day of light profit takingand little buying interest, floor traders and market analysts said.
calendar icon 6 September 2007
clock icon 1 minute read
Both moved lower in the early rounds after a mixed to firm open, and traderssay the pressure came from limited long profit taking and a lack of buy paperin the pit.

Feeder cattle futures dropped early but rallied and closed narrowly mixedafter a little late buying. Feeder cattle have a firm undertone given thestrength the contracts showed Tuesday in the face of higher corn prices,traders said.

The nearby September feeder cattle contract spent much of the session in plusterritory as speculative traders worked to reset the spread with the Octoberposition. A floor trader said it had gotten out of line in Tuesday's session.

Many traders remain concerned about tight numbers of fed cattle for the restof the year. However, other traders worry that current prices are too high tobe passed along to the beef markets effectively, so cattle futures run intoresistance around 101.00 cents per pound, basis the December contract, a floortrader said.

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