Drop in Cattle Prices Stays Above Imposed Daily Limit

[banana republican]

Wall Street Journal:
The price is falling so fast that this is the first day that beef has not fallen to the prescribed limit.


CHICAGO -- Sharp losses continued Wednesday in the most-active February live-cattle futures on the Chicago Mercantile Exchange, but for the first time in five straight sessions, cattle futures didn't settle at their exchange-imposed daily limit-down price. (See complete coverage.)

The February contract settled down 2.64 cents a pound, at 73.52 cents as late buying cut losses. CME cattle futures closed early on Wednesday ahead of the New Year's holiday.

Daily price limits are set by the exchange to curb the market's trading range. Since late last week the CME has expanded the normal price limit of 1.5 cents to five cents, on an emergency basis, because of last week's discovery of a single case of bovine spongiform encephalopathy, or mad-cow disease, in a dairy cow in Washington state. Since the discovery, February cattle values have fallen by 17.28 cents a pound.

The December contract, which expired Wednesday, trimmed heavy early losses to close 0.75 cent a pound lower at 77.20 cents, as holders of short positions covered, or bought back contracts previously sold. That helped stem losses in deferred contracts.

[nadinbrzezinski]

1. But this is not a serious issue

you know that I know that

Now move along and do your patriotic duty, EAT BEEF damn it! I am still eating beef... (paraphrasing the commander in thief)