Cattle Futures - Live Cattle Mostly Weak; Hogs Mixed

US - Analysts see Chicago Mercantile Exchange live cattle futures opening mostly weak Wednesday on shrinking beef cutout values, cash anxiety and moderately higher electronic-Chicago Board of Trade corn advances.
calendar icon 31 May 2007
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Some in the pit will also continue to trim the number of speculative spot-month positions they have to comply with CME's comedown requirements before the June 4 deadline, a broker said.

Also, the broker said, live cattle may also yield to selling that is taking place in some outside markets as a result of liquidation that occurred in China trading overnight, a broker said.

Nonetheless, shorts may continue to claim profits after last week's pre-holiday cash and futures meltdown, an analyst said. And, June's oversold Relative Strength Index conditions might be a source of down-side purchasing, he said.

August's 91.08-cent 100-day moving average serves as a major level of support.

Analysts also see feeder cattle opening mostly weak on spillover buying versus possible nervousness about feedgrain's overnight uptick and potential profit taking by longs after Tuesday's board upswing. August and September may also encounter technical resistance.

August's and September's 111.97- and- 111.21-cent 40-day moving averages are nearby resistance targets.

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