CHICAGO – CME live cattle ended narrowly mixed on Wednesday, with uneasiness about futures' premium to last week's cash cattle prices eroding morning gains fueled by the U.S. fiscal deal, analysts and traders said.
An agreement by Congress to avoid automatic year-end spending cuts and tax hikes sent the Dow Jones Industrial Average soaring more than 200 points.
Meat company stocks joined in with Tyson Foods, JBS USA Holdings Inc and Smithfield Foods Inc landing in the plus column.
Traders who had been waiting on the sidelines for some type of budget agreement felt better about returning to the market on Wednesday, a Chicago Mercantile Exchange live cattle trader said.
But CME live cattle investors were also nervous about expanding the futures' already sizable premium to cash cattle which traded last week at $127 per cwt.
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