Chicago | Reuters — Chicago Mercantile Exchange livestock futures closed mostly lower on Monday, as market participants sought profits and continued to adjust their positions as part of the so-called Goldman roll, traders said.
Monday was the third day of the five-session roll for funds tracking Standard & Poor’s Goldman Sachs Commodity Index, according to traders.
In CME’s lean hog market, for example, investors were selling April LHJ24 futures and buying June LHM24 as part of this roll, traders said.
But there were signs of bullish strength in the most-active April live cattle LCJ24 contract – which recently hit its highest price in more than four months, said independent livestock trader Dan Norcini. April futures ended the session unchanged, but above June live cattle LCM24.
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“Normally, with the roll, June futures would be higher than April – not the other way around,” Norcini said.
It also reflects confidence in a higher cash market this week, he said. Cash cattle last week traded at $185 per hundredweight (cwt) in Texas and Kansas.
The U.S. Department of Agriculture reported on Monday morning that wholesale beef prices rose firmly, with the choice boxed beef cutout at $307.04 per cwt, up 43-cents from Friday – and the highest reading since Oct. 30.
Select boxed beef cutout was also up $1.17, at $297.43 per cwt, USDA said.
CME benchmark April live cattle LCJ24 settled unchanged at 187.600 cents per pound, as traders noted continued chart-based resistance at 190 cents. June live cattle LCM24 futures settled down 0.400 cent at 183.025 cents per pound.
CME April feeder cattle futures FCJ24 fell 1 cent, settling at 253.100 cents per pound.
Hog futures ended mostly lower, though five contracts did set new highs on the day.
The most-active April contract LHJ24 settled down 1.100 cents at 83.275 cents per pound, while June hogs LHM24 fell 0.775-cent to end at 101.050 cents per pound.
