Cattle Futures - Live Cattle Rally

US - CME live cattle contracts settled higher on improved wholesale beef quotes,short covering and fund buying.
calendar icon 19 September 2007
clock icon 1 minute read
The U.S. Department of Agriculture's midday boxed beef prices on Tuesdayshowed choice cuts up $0.68 per hundredweight and select gained $0.49.

October and December's oversold chart situations motivated potential buyerson the open. Longs were emboldened by CBOT corn that floundered in negativetrading territory throughout most of the morning.

Nevertheless, live cattle futures briefly slipped from early-session highsafter CME lean hog contract collapsed due to fund selling, sell stops andChina/U.S. pork export issues.

However, cattle futures again moved upward, spurred by a spate of short-covering and fund buying after nearby-December first cracked the 40-day thensubsequent 10-day moving-average barriers.

Furthermore, longs felt more comfortable implementing positions in advance ofFriday's cattle-on-feed report. Analysts forecast another dip in cattleplacements and suspect marketings will be up slightly.

Selling October and buying December on spreads was common throughoutTuesday's session. That limited spot-October's upward momentum but gavenearby-December added lift.

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