Cattle Futures - Live Cattle Hit 2-Week Highs

US - CME live cattle closed higher, with August and October peaking at two-weekhighs on fund buying and fed cattle speculation for this week. Buying Augustand selling October on spreads gave August added lift.
calendar icon 22 August 2007
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Carryover bullishness and initial spongy CBOT corn contracts emboldened earlycattle futures buyers. Also, August and October's open above major movingaverage resistance obstacles hastened advances.

However, buying interest briefly stalled as CBOT corn made its way upward andOctober periodically tested subsequent 20-day moving average resistance. What'smore, a few spot-month longs took a step back after boxed beef came in weaker.

The U.S. Department of Agriculture's midday boxed beef wire showed choicecuts down $0.18 per hundredweight and select $0.84 lower.

Nonetheless, live cattle contracts resumed their ascent as fund buyers werelater joined by local traders.

Fed cattle owners who are asking upwards of $94 per hundredweight for theirlive-basis animals look to futures for support. Meanwhile, early-week packerbids range from $88 to $90.

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