Cattle Futures - Most Live Cattle Weak

US - CME live cattle settled mostly weak on spreading out of deferred contracts into spot-April in anticipation of this week's cash developments, outside market bearishness and CBOT corn's tumble.

17 March 2008

1 minute read

North America

Beef futures churned for most of the session stirred by periodic bouts of short covering and speculative buying due to front-months' oversold chart conditions.

However, live cattle sometimes retreated because of cash uncertainty and lagging wholesale beef demand. Also, fallout in the financial and equities sectors crept into the cattle pit because of funds' involvement in cattle futures.

Meanwhile, far-month cattle trading options initially surfaced above negative trading territory because of CBOT corn's overnight gains. Nevertheless, CBOT feedgrains turned sour soon after the 1030 EST outcry which eventually undercut deep live cattle contracts.

The U.S. Department of Agriculture's Friday midday boxed beef wire showed choice cuts down $0.93 per hundredweight and select items dropped $1.13.

Source: FXSTREET