Cattle Future - Live Cattle, Feeders Fall

US - Chicago Mercantile Exchange live cattle and feedercattle futures closed lower Thursday amid profit-taking that was sparked bynews that South Korea overnight had cut off imports of U.S. beef, brokers andmarket analysts said.
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Additionally, feeder cattle received pressure from higher corn prices at theChicago Board of Trade, traders said. Corn rallied amid fears the U.S. corncrop might not match U.S. Department of Agriculture predictions, they said.

After rallying for a week following a profit-taking setback last week, themarket had become overbought, and speculative traders were looking for a reasonto take some profits, traders and brokers said. Some commercial traders alsowere said to be selling deferred futures contracts thinking prices wouldretreat unless South Korea stepped back into the market, the traders andbrokers said.

A technical trader said the narrow range in October's open and closing pricesindicates traders are conflicted about the direction of prices in the nearfuture. Friday's action will be key, he said. The market now needsfollowthrough pressure, and if it comes on Friday, traders could be looking ata change in near-term trend, the trader said.

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