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Pork Futures: Cattle, Hogs Lower; Feeders, Bellies Up

by 5m Editor
13 November 2007, at 8:13am

US - Chicago Mercantile Exchange live cattle futures prices ended lower Monday amid active spread trading, uncertainties about cash market demand and a lack of overall direction in light volume, floor traders and brokers said.

Meanwhile, feeder cattle futures were higher, lifted by a weak corn market, hog futures closed mostly lower, and bellies finished higher.

A floor trader said the cattle market was showing the effects of trader fears of a softer economy. A greater number of them worry that the market may be due for a recession, and they aren't willing to stick with long positions for very long without taking profits.

Live cattle prices opened softer as traders sold, floor traders and brokers said. Support came in at the early lows as other traders stepped in to grab some value purchases.

Prices rose to early highs amid speculation light cash cattle business last week could lead to higher prices this week as packer buyers came around to augment their limited purchases, traders and brokers said.

Initially, that resolve by cattle owners to get higher prices or hold cattle until this week was considered bullish because it meant there were fewer slaughter-ready cattle behind them that would swell this week's feedlot showlists. This was especially true in light of last week's gains in boxed beef cutout values, they said.

However, continued spread trading pressured deferred contracts by mid-session, and the pressure bled over into the nearby contracts near the close.

Source: FXstreet.com

5m Editor