Cattle Futures - Most Live Cattle Rise

US - Most Chicago Mercantile Exchange live cattle contracts Tuesday ended up slightly on bear-spreading out of December and February into April, and pre-Goldman roll activity.
calendar icon 7 November 2007
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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 Wednesday.

Profiteers undermined cattle contracts at the start after Monday's steep climb that drew criticism for being overstated and without much merit. Also, prospective buyers watched the open from the sidelines given last week's fed cattle weakness.

Nonetheless, front months shrugged off initial losses with the help of impressive wholesale beef demand and February fund buying driven by the upcoming Goldman roll.

The U.S. Department of Agriculture's midday boxed beef wire Tuesday showed choice beef cuts up $0.50 per hundredweight and select items were up $0.31.

Meanwhile, spreaders shorted December and bought April as they steered clear of front-month volatility generated by December/February forward spreaders and Goldman rollers.

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