Cattle Futures - Live Cattle Sink

US - CME live cattle settled lower on fund liquidation, sell stops and turmoil in other commodity markets that crept into the live cattle sector.
calendar icon 5 March 2008
clock icon 1 minute read
Some beef futures actually began the morning on a mildly positive note fueled by this week's cash optimism and recent wholesale boxed beef advances.

Spotty $90 per hundredweight live-basis fed cattle bids were reported Tuesday versus $95 asking prices.

The U.S. Department of Agriculture's midday boxed beef wire Tuesday showed choice cuts up another $0.76 and the price for select items increased $0.49.

What's more, short covering and spot-April live cattle's oversold technical indicator provided short-lived early market relief. And speculative bulls defended some of their far cattle month options in spite of CBOT corn's overnight slump.

Nonetheless, spot-April's upward momentum fizzled amid cash caution and periodic shifting by funds out of the contract into June. Eventually, sell stops hastened April's fall to a level not seen since Feb. 2, 2007.

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