Cattle Futures - Live Cattle Caves To Fundamentals
US - Chicago Mercantile Exchange live cattle futures closed lower on disappointing cash news, boxed beef's downward path and fund liquidation. Also, spot-June sell stops pressed the contract to a four-month low. And, CBOT corn's strength hastened far-month live cattle declines.
25 May 2007
1 minute read
Trailing boxed beef prices late Wednesday, and that day's dressed cattle sales that were well below last week's values, sent CME live cattle contracts tumbling on the open. Futures lost further ground on word that live-basis cattle in Texas and Kansas were discounted as much as $3.50 per hundredweight versus a week ago.
Funds also rolled some of their spot-month positions into August in advance of the exchange's June 4 comedown requirement deadline, a broker said. "We've got a three day holiday weekend coming up, there's a good chance some of those guys won't be in the pit tomorrow," he said.
An increasing number of traders are expected to square accounts during Friday's session that will be shortened by an hour because of the U.S. Memorial Day holiday Monday. After being the big winners this week, it is highly unlikely that bears will leave money on the table Friday, another broker said.
Source: FXSTREET
