DTN Closing Livestock Comment 12/04 15:58
Cattle Market Weakness Continues
Renewed pressure developed Monday morning in all cattle trade. The combined
weakness of last week's futures price tumble, weaker cash values and eroding
beef prices has traders concerned of further liquidation.
Cattle futures were the center of attention Monday with active losses seen
in all contract months. Feeder cattle futures set the weaker tone of the market
with sharp triple-digit losses developing early, but continuing to show
weakness through the entire session. Monday's moves broke through last week's
support price levels, causing markets to move to new multi-month lows for the
last two Monday's in a row. The inability to hold support levels in live cattle
and feeder cattle trade is adding to the already weak market structure and
sparking technical pressure.
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