Cattle Futures: Live Cattle Mixed On Spreads, Cash Caution
CHICAGO - Chicago Mercantile Exchange live cattle futures closed mixed on April longs rolling into June that was linked to residual Goldman Roll business because of April's huge open interest. The roll is in accordance with guidelines governing the Goldman Sachs Commodity Index.
21 March 2007
2 minute read
"The only interest in trading April was funds wanting to get out of April," a cattle broker said.
Meanwhile, April and June investors had 20-day moving average pressure hanging over their heads. Potential buyers also bided their time awaiting this week's cash trade. And market bulls were put off by Chicago Board of Trade corn's modest upswing.
Spot-April closed down 20 points at 97.60 cents a pound.
Most-active traded June finished up 10 points higher at 94.95 cents.
Although mixed rather than lower midday boxed beef prices were enough to "keep April from totally falling apart," long-sided investors were not overly committed to the spot month that retreated significantly from where it was early last week.
What's more, while some in the pit anticipate this week's cash direction, others already look forward to the federal government's monthly cattle-on-feed report that will be released on Friday at 3 p.m. EDT.
A veteran livestock trader said that he is primarily focused on cash sales this week rather than the monthly cattle-on-feed numbers that are usually close to projections. Processors pushed cash prices to $100 per hundredweight last week but they may not be as willing to up bids this time unless boxed beef cooperates, he said.
RJ O'Brien was an outright June buyer and April/June bear spreader. Cadent Financial bought April. Rosenthal and Fimat were among June buyers.
