Cattle Futures - 3-Month Live Cattle Lows

US - Chicago Mercantile Exchange live cattle posted steep losses Friday, with October and December sliding to three-month lows, on cash fears, midday boxed- beef discounts and fund selling. Also, feeder cattle finished down sharply.
calendar icon 8 October 2007
clock icon 1 minute read
Meanwhile, most lean hogs closed firm. And, low-volume February bellies ended up slightly.

Profit-taking after Thursday's modest rally undercut live cattle futures from the start. The fact that processors are operating at a margin disadvantage, and wholesale beef is moving but at lower prices, weighed on trader psyche.

The U.S. Department of Agriculture's midday boxed-beef wire on Friday showed choice cuts down $1.01 per hundredweight and select items $0.51 lower.

"Packers aren't going to pay up for cattle if they can't move meat," a broker said.

Packer bids were last reported at $92 per hundredweight. Fed cattle owners are asking upward of $97.

Futures' slide caught the eye of fund traders who piled on and in the process set off sell stops.

Unsettled fed cattle business held CME beef futures hostage into the commodity's settlement. As a precaution, traders priced in cattle below earlier $94.50 to $95 per hundredweight expectations, especially after Friday's board collapse.

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