Cattle Futures - Live Cattle Finished Firm and Feeders Higher

US - Chicago Mercantile Exchange lean hogs closed higher onTuesday on short covering, July/August bull spreading and August long's movement into October in pre-Goldman roll activity. That slowed August advances but provided additional October backing. Meanwhile, live cattle finished firm and feeders higher.
calendar icon 4 July 2007
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Live cattle gained slightly in late-day business stirred by short covering,mending boxed beef values, and August/October and August/December bull-spreading. That not only hoisted August above 10-day moving average resistance but trumped August long's attempt to roll into October before theJuly 9 Goldman roll period begins.

Chicago Board of Trade corn's demise as the session wore on later contributedto far-month live cattle buying during the otherwise quiet trading day as players prep for Wednesday's holiday downtime.

Tuesday's board action emboldened bullish cattle traders who are also bankingthat boxed beef's turn around will pique fed cattle buying interest this week.The federal government's midday boxed beef item on Tuesday showed choice and select cuts gained another $1.20 and $0.67 per hundredweight.

Nonetheless, live cattle market bears argue that front-month futures advances on Tuesday was a testament to nervous shorts more than the development of abullish futures trend.

What's more, an admitted bear said August and October have "technical issuesto deal with" on Thursday, and both remain at "decent" premiums to last week'sfed cattle sales.

Rosenthal was an August and October buyer. RJ O'Brien bought August. Fimat,Cadent Financial and JP Morgan bought October.

Feeder cattle ended higher on short covering, August/September and October/November bull-spreading and steep CBOT feedgrain losses. That helped drive August and September feeders to six-week highs.

August live cattle settled at 89.97 cents per pound, up 30 points, andOctober ended at 94.75 cents, a gain 27 points.

August feeder cattle finished 60 points higher at 111.55 cents, and September closed 70 points higher at 112.50 cents.

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