Cattle Futures - Most Live Cattle Gain

US - Most live cattle ended on a positive note on this week's cash trade ideas, buying April and selling February on spreads and speculative back-month hedging.
calendar icon 21 January 2008
clock icon 2 minute read
Live cattle were driven up on the open by residual short covering and February and April's oversold chart situations. Also, spot-February's discount to last week's cash values lured prospective bullish traders.

And, rear cattle months started the session firmer even though CBOT corn futures trended lower during the overnight hours and throughout Friday's regular session.

Nonetheless, volatility surfaced periodically as traders evened-up positions before the weekend, which at times caused some contracts to slip from earlier tops. Lukewarm wholesale boxed beef demand periodically gnawed at February's advances.

And, a few deferred months lost ground when it became apparent that CBOT corn was not going to mount a comeback.

Nonetheless, shorts later covered previously held positions before the close. And, spot-month traders factored in what they believe will be no less than a $91 per hundredweight cattle sale this week.

On Tuesday, traders for the most part will react to this week's cash news while others look ahead to next Friday's USDA's monthly cattle-on-feed report.

Feeder cattle ended higher on short covering, CBOT feedgrain's slide and fund buying after March broke through 10-day moving average resistance. Also, spreaders sold March and bought April.

February live cattle closed up 10 points at 91.00 cents a pound, and April closed up 42 points at 94.25 cents.

January feeders closed 62 points higher at 97.67 cents a pound, and March ended 100 points higher at 102.30 cents.

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