Cattle Futures - Live Cattle Slide

US - CME live cattle contracts settled moderately lower on nervousness about thisweek's cash turnout based on lethargic wholesale beef movement and packingplant operation cutbacks amid shrinking calculated packer profit returns
calendar icon 18 September 2007
clock icon 1 minute read
Chicago Board of Trade corn advances throughout the session contributed tolive cattle's board losses.

Live cattle dropped at the start on word that processor interest in owningcattle dried up late Friday because of tepid retail beef purchases andoperating margins that sank deeper into red ink.

Cattle contracts also had a noticeably bearish reaction to lean hogs' abruptdrop that was attributed to local selling, sell stops and negative China/U.S.pork export developments.

Butterfly spreads exerted added pressure on the December live cattlecontract. December was sold on the spread, which represented the body of thebutterfly, while October and February buying symbolized the butterfly's wings.

Fundamentals will again play a major role in Tuesday's trade as floorparticipants and fed cattle owners and sellers gain a better perspective ofthis week's showlists after only a handful of cattle sold last week.

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