Cattle markets fall
CME live cattle closed mostly weak on residual fallout from last week's disappointing cash cattle price results, bear spreading and sell stops.
Live cattle fluctuated throughout the morning. Dejected bullish traders exited the market after cash cattle prices fell shy of the prior week's results.
Cash-basis fed cattle last week brought mostly $83 per hundredweight versus generally $84.50 the previous week.
By the same token, several contracts' drop to new seasonal lows last Friday piqued the interest of those "looking for value."
Uninspiring boxed beef prices and sullen beef packer profit margins exerted added market pressure. However, October and December oversold chart conditions, higher CBOT corn and U.S. equities' advances stirred buying on live cattle breaks.
At one point October live cattle drifted to its lowest level in 10 months. Several deep cattle contracts again fell to new seasonal lows where willing buyers were waiting.
Live cattle traders Tuesday will have their feelers out for potential deliveries as spot-October readies for expiration Oct. 30.
October settled down 27 points at 82.67 cents a pound, and December closed down 10 points at 83.9 cents.
Feeder cattle ended weak, and October and November initially sank to 10-month lows, on sell stops, CBOT corn's runup and spreading out of November and January into October.
Back-month feeder cattle premiums to CME's feeder cattle index deterred far cattle month buyers.
Also, spot-October selling developed before the contract's Oct. 29 expiration date.
And distant feeder cattle contracts' premiums to CME's feeder cattle index deterred would-be buyers.
October feeder cattle settled down 20 points at 93.35 cents, and November closed down 27 points at 93.3 cents.
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