DJ CME Cattle Review: Higher As April Longs Migrate Into June
CHICAGO - Chicago Mercantile Exchange live cattle contracts settled slightly higher Tuesday, with April versus June live cattle spreads providing most of the action in an otherwise low volume session.April live cattle settled up 25 points at 97.60 cents per pound. March feeders closed down 40 points to 103.37 cents.
The spreads were seen as an early arbitrage of the Goldman Sachs commodity index roll of April longs into June, which, officially, begins with Wednesday's closing range.
Traders estimated about 3,000 contracts of April longs moved into June on the close, with another 5,000 migrating earlier in the session. Prominent live cattle pit locals took the other side of that early roll.
"There are very few outright buy or sell orders in the pit," said one broker. "It's all spreads."
Several traders said they expected the roll to dominate trading for the remainder of the week.
Source: FXSTREET.com