Cattle Futures - Live Cattle Gain Slightly
US - CME live cattle posted modest advances on short covering, midday wholesale beef's recovery and late last week's fed cattle trade. Cash cattle Friday were reported below the prior week's prices but at a mildly bullish discount to December futures.
11 December 2007
1 minute read
Live-basis cash cattle Friday sold from $94 to $94.50 per hundredweight, compared with that day's 94.02-cent December settlement. Some fed cattle the week before moved at upwards of $95.50.
Beef futures gained on the open despite trepidation among speculative front-month cattle buyers about Friday evening's lower boxed beef results and Monday being the first notice day for CME live cattle deliveries. What's more, spot-December longs liquidated positions into up ticks due to December's pending Dec. 31 expiration.
However, higher midday boxed beef prices, and December and February's oversold Relative Strength Index chart conditions, motivated break-buyers. And, forecasts calling for added amounts of ice and snow in the Midwest underpinned front-months.
The U.S. Department of Agriculture's midday boxed beef wire showed choice cuts up $1.20 per hundredweight, and select items gained $0.67.
Source: FXSTREET
