Friday Cattle futures closed on the downside amid the profit fixation after rising on Friday. The corn market was in the limelight on Monday. The corn futures exceeded the day limit during the electronic trading on GLOBEX, but by the session opening the prices fell.
Many traders were afraid of that speculants on the corn market will fix the ir profit after a huge surge on Friday blowing up the growth basis for beef. However, it did not happen and the investors turned back to the market and restricted the price falling.
At the same time, the traders started running spread trading opening long positions with April delivery and selling October and December contracts amid the expectations that the price advance for corn will put a great impact on futures with long delivery term and less influence on the nearest term deliveries.
When the corn market stabilizes the investors will turn their attention to other problems. The traders say that the time comes when the market should feel the bottom after that the U.S. Department of Agriculture will begin publishing the beef price reports.
In addition, the beef export from the USA which makes a half of the total national production continues rising that supports the prices.
By the end of the deals the cattle futures decreased by 0.12 cents or by 0.12% to 98.75 cents for pound.
