Cattle Futures - Live Cattle Slip

US - CME live cattle settled weaker on nervousness about this week's pending cash trade, spreaders who sold back months and bought spot-February, and CBOT corn's eventual tumble from session tops.
calendar icon 7 February 2008
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Most beef futures began the session up slightly due to robust wholesale beef sales, reduced show lists and underlying chart backing. On the other hand, rear-months ignored electronic-CBOT corn gains that spilled over into its outcry trade.

Spot-February live cattle eventually eased from highs as anxiety started to build regarding this week's potential cash outcome. Spreading out of nearby-April into other month options caused the nearby contract to slip beneath first-level 20-day-moving-average chart support. But, April held at the second-level 10-day moving average mark.

After putting up new contract highs on Tuesday, bullish deep-month cattle speculators kept their distance even when CBOT corn surged even higher as the morning progressed. However, corn contracts later collapsed as livestock markets began to close.

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