Cattle Futures - Cattle Posts Uneven Settlements

US - Chicago Mercantile Exchange live cattle settled mixed during the session Friday, which featured the roll by funds out of February into April, and back-month new contract highs driven by limit-up corn futures.
calendar icon 14 January 2008
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CME beef futures slumped at the start amid mounting concern about this week's live-basis fed cattle trade. Some animals later in the day were sold at $92 per hundredweight against last week's $95.50 top.

February's negative posture was further exacerbated by intense Goldman roll activity. The roll, which was in its fourth of five days, consists of funds moving some of their spot-February long positions into April that is tied to the Goldman Sachs Commodity Index.

Fund selling and sell stops toppled February to a one-year bottom and April slid to an eight-month low.

Distant live cattle months that initially sagged due to profit taking later rebounded with the help of limit-up Chicago Board of Trade corn contracts.

Only a small number of cash cattle moved in the Midwest prior to CME's live cattle pit close Friday, which means traders Monday will look to see how remaining fed cattle sales fared, a broker said.

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