Cattle Futures - Live Cattle Flat-Firm; Most Hogs Gain
US - Chicago Mercantile Exchange live cattle futures closed flat to firm Monday on short covering, June/August and June/October bull spreading and positive fundamental signals. June's and August's oversold Relative Strength Index conditions, and Chicago Board of Trade corn's less-threatening trade provided added cattle support.
5 June 2007
1 minute read
Live cattle slipped on the open due to spillover from Friday's sell-off and lower boxed-beef quotes. Potential buyers also stepped back on the open to get a feel for early week market direction after hearing that packers on Friday paid upward of $93.50 per hundredweight for live-basis cattle.
And, although beef cutouts trailed into the weekend, retail meat buyers on Monday snapped up product at reduced prices that underpinned the cutout on Tuesday. The federal government's midday beef wire on Tuesday showed choice jumped $0.90 per hundredweight and select up $0.55.
However, some of the same technical issues that pestered June and August on Monday will be in place on Tuesday. That, along with the usual weekly cash vigil, could cause futures to trade sideways into Wednesday. Overnight boxed-beef values should again garner attention from traders after Monday's rebound.
Source: FXSTREET
