Live cattle futures posted strong gains ahead of cash trade and Friday's modestly bearish on feed report. Cash did end up stronger for the week, in spite of the higher than expected December placement number of 99%.
Chicago Mercantile Exchange live cattle futures gained sharply on Wednesday, fueled by short-covering in response to higher-than-expected preliminary cash prices, said traders.They said fund buying contributed to market
U.S. live cattle futures declined for the third straight session on Thursday, pressured by technical selling linked to worries that rising wholesale beef prices were nearing a seasonal peak, traders and analysts said.
Packers were hesitant to offer a bid on cattle early last week, and after a $5 decline, feeders still have many unanswered questions about the impact of harvest capacity.
"A lot of folks think we should mandate with a law—a federal LAW, mind you, because those always work out so well—that more feeders sell in the cash market. But tying feeders’ hands like this isn’t the answer."
