Cattle Futures - Live Cattle Surge On Fund Buys, Stops
US - Chicago Mercantile Exchange live cattle futures closed higher Monday on fund buying, buy stops and June/August and June/October bull positioning spurred by last week's higher-than-expected cash trade. Friday's slightly bullish monthly cattle-on-feed outcome and significant front-month technical backing furthered advances.
22 May 2007
1 minute read
Live cattle rose on the open after some live basis cattle on Friday moved at more than $1 per hundredweight above the prior week's trade.
What's more, the U.S. Department of Agriculture's monthly cattle-on-feed data revealed a placement figure that was slightly above the projected average but far less than some had estimated. And, the higher-than-expected marketings result added to the report's generally bullish tone.
A few traders also bought June as recommended by an agricultural research firm to do so on May 21.
However, uneven midday boxed beef results on Monday, and last Friday, at times slowed the board's upward momentum. And, front-month buying at times stalled because of sentiments that packers might roll back bids as the Memorial Day holiday nears.
Source: FXSTREET
