DJ CME Cattle Review: More New Highs, But Most Close Lower

US - Most Chicago Mercantile Exchange live cattle months closed slightly lower on lack of cash activity Wednesday, but all months other than most-active April registered new contract highs during the session.
calendar icon 1 March 2007
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February live cattle expired down 30 points at 94.45 cents per pound. March feeders ended down 15 points to 101.60 cents.

February live cattle futures expired quietly lower at 1 p.m. EST, with less than 50 contracts remaining open, said traders involved in the February close.

Traders and analysts said the February expiration probably meant CME live cattle futures open interest would not register a third consecutive all-time record high.

Tuesday's trade resulted in a new open interest record of 283,602 contracts, which had topped the previous 281,850-contract record in the wake of Monday's action.

April saw price pressure from a month-end spread selling April, while buying June.

"That account has been doing that at the end of each month," said one cattle pit broker. "I think it's a fund rolling longs."

Traders said the new contract highs posted earlier in the session could not be sustained because the market is still waiting for the results of this week's cash live cattle trade. Also, midday wholesale beef prices were lower.

Rosenthal sold Aug aggressively on the close. JP Morgan sold April. Fimat and JP Morgan bought June as Rosenthal, RJ O'Brien and Cadent sold. RJ O'Brien also bought June, while selling April.

Source: FX
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