Cattle Futures - Live Cattle Gain

US - Chicago Mercantile Exchange live cattle posted modest gains on short covering, cash hog price speculation, and October/December bear and December/February forward positioning. That provided added December lift but limited October and February's upside potential.

26 October 2007

1 minute read

North America

In spite of Wednesday's beef cutout drop, CME live cattle rose at the outset as shorts covered previously held positions. December's oversold technical indicator gave speculators a reason to buy. And feelings that Wednesday's losses were unwarranted contributed to Thursday's moderate run up.

However, subsequent unease about wholesale beef demand and cash trepidation at times gnawed at gains. What's more, rallying Chicago Board of Trade corn kept a tight lid on far cattle months.

The U.S. Department of Agriculture's midday boxed beef wire quoted choice cuts down $0.56 per hundredweight and select items slid $0.92.

Floor sentiments indicate at least a steady cash trade this week. Packer buyers tabled $90 to $91 per hundredweight bids versus upwards of $97 asking prices.

Source: FXSTREET