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Cattle Tumble As Funds Sell, USDA Report Looms

U.S. cattle futures fell more than 2% on Wednesday on fund selling and expectations the government will show a large increase in the number of cattle placed in feedlots in July.

U.S. cattle futures fell more than 2% on Wednesday on fund selling and expectations the government on Friday will show a large increase in the number of cattle placed in feedlots in July.

Moving of October positions into December, called rolling, also weighed on the nearby contract, traders say. That action pushed October through technical support levels.

Analysts and traders polled by Reuters, on average, expect the USDA report to peg the number of cattle at feedlots on August 1 at 107.3% of a year ago.

They expect placements in July at 117.3% and markets in July at 96.5%.

Chicago Mercantile Exchange (CME) hog futures fell as traders took their cue from live cattle's losses. In addition, talk that cash hog and pork prices may be waning as the U.S. Sept. 5, Labor Day holiday nears added pressure.

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