Cattle Futures - Live Cattle Mostly Firm

US - Live cattle closed mostly firm on October/December bear spreads stirred by this week's cash caution that pressured spot-October but supported nearby-December.
calendar icon 28 September 2007
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Cattle futures also snapped back from morning lows, and most contracts landed in positive trading territory, due short covering and fund buying. Upward momentum was also linked to position squaring before the end of the quarter.

Beef contracts wilted at the start amid warmed-over selling, overnight-CBOT corn gains and jitters about board premiums to last week's cash trade. Also, spot-October's mildly overbought chart condition deterred potential buyers.

Nevertheless, October at times received down-side support because of robust wholesale beef demand. And, a few speculative buyers stepped in after spot-October filled Monday's chart gap and eyed subsequent technical support levels.

Meanwhile, December gradually made headway after bounding off the 20-day moving average floor.

By the same token, several trading months found it difficult to shake bearish attitudes that live cattle futures are over-priced at current price levels.

Although Friday could spell increased volatility as the final hours of the quarter tick down, most traders will focus on this week's cash outcome.

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