Cattle Futures - Live Cattle Advance

US - Live cattle finished on a positive note amid spot-December jockeying before the contract's 1 p.m. EST expiration, position evening as the final trading hours of 2007 ticked down, and pre-Goldman roll activity.
calendar icon 2 January 2008
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Enthusiasm after last week's surprisingly strong fed cattle results spilled over into Monday's open. Initial upward momentum forced spot-December above the 20-day moving average support level.

December's climb later accelerated after the contract broke through 40-day moving average resistance that touched off a series of buy stops. Also, spot-December traders built in a premium to last week's $93.50 per hundredweight live-basis cash top.

And while early buying rescued February that briefly slipped beneath the 20-day moving average support floor, a few funds sold February and bought April as the morning progressed in preparation for early-January's Goldman roll.

Monday's abbreviated session appeared to be driven more by technical factors than fundamentals because of the lack of cash direction. Also, uneven midday boxed beef demand offered little in the way of leadership for fundamental traders.

The U.S. Department of Agriculture's midday boxed beef wire showed choice cuts up $0.29 per hundredweight and select items down $0.17.

Feeder cattle closed higher on short covering, forward spreading and live cattle advances. Fund buying and buy stops hastened advances after January and March cleared major moving average resistance obstacles.

December live cattle closed 275 points higher at 96.25 cents a pound, and February finished up 12 points at 96.17 cents.

January feeders closed 77 points higher at 105.10 cents a pound, and March settled up 75 points at 107.10 cents.

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