Cattle Futures - Most Live Cattle Weak

US - Chicago Mercantile Exchange live cattle contracts Monday settled mostly weak on Friday's bearish federal government monthly cattle data and December/February forward spreading. That eased December's losses but weighed more on February.
calendar icon 20 November 2007
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Meanwhile, feeder cattle and lean hogs closed down slightly and pork bellies gave up sizable ground during the session.

Live cattle contracts jumped on the open spurred by short covering and last Friday's higher-than-anticipated fed cattle prices. What's more, boxed beef's modest gains Friday gave futures added lift Monday.

However, December and February buying abated after both contracts encountered technical resistance. Furthermore, traders surrendered to the reality that more cattle would fill feedlots in the months ahead based on Friday's cattle survey.

Also, live cattle contracts had a noticeably bearish reaction to steep losses in the equities and lean hog markets.

On the other hand, last week's $94 per hundredweight live-basis fed cattle sales top emboldened spot-December buyers enough to buy breaks. That, along with short covering and midday boxed beef's rise, rescued contract from morning lows.

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