CHICAGO – U.S. live cattle on Monday suffered its worst two-day setback in three months as funds took profits after the market's record high last week, and discouraging economic data out of China could hurt U.S. beef and
pork exports.
The sell-off gained momentum after most-actively traded April and June contracts violated key technical support levels closely targeted by funds.
CME live cattle sank further amid sentiment futures were technically overbought and concern that surging gasoline prices would soon douse beef demand.
"Between the equities and energy markets, the meat trade in general is probably going to price in a slower summer season for beef with retail level prices pointing the consumer toward chicken and pork," said Global Commodity Analytics and Consulting President Mike Zuzolo.
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