Cattle Futures - Live Cattle Gain

US - CME live cattle contracts settled moderately higher on short covering andfund purchases. Also, October/December forward spreading, fueled by this week'scash expectation, clashed with longs that rolled into December on the final dayof the Goldman roll.
calendar icon 17 September 2007
clock icon 1 minute read
Beef futures slipped at the start amid spillover weakness and uneasinessabout cash cattle direction amid waning wholesale beef demand. Also, recentboard setbacks and bloated showlists weighed on futures.

However, October and December clawed back from session lows amid shortcovering, buy stops and fund buying. Furthermore, bullish traders gainedconfidence about this week's cash as futures moved higher despite continuedboxed beef weakness.

The U.S. Department of Agriculture's midday boxed beef prices on Friday quoted choice cuts down $0.37 per hundredweight and select items slippedanother $0.44.

As of futures' close on Friday, packer bids still hovered around $92 perhundredweight for live-basis cattle against $97 asking prices.

October live cattle finished under 95.79-cent 100-day moving averageresistance.

December closed beneath the 99.37-cent 40-day moving average.

Traders will focus on this week's cash outcome when they return to thetrading floor on Monday, a broker said.

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