Cattle Futures - Cattle Complexes Settle Higher

US - CME live cattle closed up sharply, and all contracts except spot-June hit new monthly highs, on better-than-anticipated early cash cattle returns, fund buying and vigorous short covering.
calendar icon 9 May 2008
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Beef futures firmed at the start in extremely quiet activity on light June/August and August/December forward positioning. Also, deferred-month live cattle began the rather tranquil session steady to up slightly in response to higher overnight-CBOT corn.

Nonetheless, spot-June and nearby-August broke the initial silence after both month options punched through first-level 20-day moving average technical resistance levels without fundamental provocation at that time.

The clamor in the cattle arena erupted after June and August exploded beyond subsequent chart obstacles which stirred fund buyers, prompted nervous shorts to cover positions and sent some in the pit searching for answers.

"Somebody in there must have caught wind that cash was going higher, otherwise none of this would have made sense," a brokerage firm's trader said afterward.

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