Cattle Futures - Live Cattle Firm; Hogs Bow Before Report

US - With the exception of the now expired spot-Junecontract, Chicago Mercantile Exchange live cattle futures closed firm on shortcovering and June/August bear spreading that pressured June before itsexpiration but underpinned August.
calendar icon 2 July 2007
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August was also the beneficiary of August/October bull spreads as traderssquared positions on the final trading day of the quarter and for the month.

August/October and August/December bear spreads slowed August advances butoffered added October and December support. And, August longs shifted some oftheir positions into October as the first of five days of the Goldman rollapproaches on July 9.

The roll is done in conjunction with the Goldman Sachs Commodity Index.

What's more, far-month live cattle were buoyed by sinking Chicago Board ofTrade corn futures. Feeder cattle closed up sharply.

Meanwhile, lean hogs finished lower and bellies mostly weak ahead of thefederal government's quarterly hog report on Friday at 3 p.m. EDT (1900 GMT).

Live cattle sprinted upward on warmed-over short covering and follow-throughbuying in the heels of Thursday's stout gains. Buy stops and initial sporadicJune/August bull spreading advanced spot-June's cause. In the meantime, Augustreceived added incentive after overcoming prime technical resistance obstacles.

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