CHICAGO, Dec 4 (Reuters) - U.S. cattle futures fell on Wednesday, pressured by technical selling after hitting their highest level in more than two weeks, traders said.
“Short-term fundamentals look a little top heavy and it may be more and more difficult for the market to rationalize the stiff premiums of futures to the cash,” brokerage R.J. O’Brien said in a note to clients.
The hog market was slightly firmer, underpinned by hopes for a trade deal between the United States and China, the world’s top consumer of pork.
February live cattle ended down 1.475 cents at 124.175 cents per pound.
The contract dropped below its 10-day, 20-day and 30-day moving averages before finding support near the low end of its 20-day Bollinger range.
CME January feeder cattle futures dropped 1.5 cents to 140.875 cents per pound, closing near session lows. Early strength in feeder cattle evaporated after the January contract failed to hold support above its 40-day moving average.
Benchmark February lean hogs closed up 0.05 cent at 68.425 cents per pound at the Chicago Mercantile Exchange.
U.S. President Donald Trump, who on Tuesday roiled markets after he raised the prospect of extended U.S.-Sino trade tensions, on Wednesday told reporters at a meeting of NATO leaders: “Discussions are going very well and we’ll see what happens.” (Reporting by Mark Weinraub Editing by Sonya Hepinstall)
Our Standards: The Thomson Reuters Trust Principles.