Cattle Futures - Live Cattle Surge

US - Chicago Mercantile Exchange live cattle settled higher Monday on short covering, fund buying and midday boxed beef's upswing.
calendar icon 6 November 2007
clock icon 1 minute read
Feeder cattle also ended higher while lean hog finished mostly weak and bellies closed lower.

Beef futures opened surprisingly firm despite Friday's lethargic boxed-beef demand and soft fed cattle results compared with the week before. Also, some thought fallout in the equities markets would spill over into the cattle pit.

The bulk of Friday's fed cattle live-basis sales were around $92 to $93 per hundredweight. That was steady to down $1 compared with the previous week's sales that brought as much as $93.50.

However, speculative shoppers were drawn to December and February's oversold chart indicators. And, February benefited from pre-Goldman roll action that drove the contract beyond key moving average resistance levels.

The roll consists of funds moving some of their spot December long positions into February in association with the Goldman Sachs Commodity Index. The first of five days for the roll will officially begin on Nov. 7.

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