Cattle Futures - Live Cattle Soft On Spreads, Boxed Beef

US - Chicago Mercantile Exchange live cattle futures posted a weak settlement on June/August bear spreading amid cash caution for this week and lower midday boxed beef quotes. Fund selling, sell stops and moderate Chicago Board of Trade corn gains contributed to live cattle declines.
calendar icon 24 May 2007
clock icon 1 minute read
Feeder cattle closed lower, hogs flat to firm and bellies up slightly.

Spot-June live cattle gapped lower on the open, and August drifted below key moving average resistance floors, after boxed beef's drop Tuesday. That confirmed bearish suspension that retailers are buying product hand-to-mouth before Memorial Day holiday.

What's more, talk that processors may not be as needy for live supplies because of the three-day holiday weekend, and slowly eroding calculated packer profit margins, furthered June board declines.

With livestock markets closing an hour early Friday in preparation for the extended holiday weekend, cash and futures traders are hard-pressed to wrap up business quickly, a broker said. Also, people who are taking additional time off for the holiday will settle accounts on Thursday and start fresh when they return on Tuesday, he said.

Fimat bought June and sold August outright. Cadent Financial was on both sides of August. J.P. Morgan was among August buyers. Man Financial bought October. Oak Clearing and Rosenthal sold June.

Source: FXSTREET
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