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The Goldman Roll, the monthly rolling of GSCI futures positions from the fifth to ninth business day, pressured the December live cattle contract as funds shifted December longs into February and April. The December contract lost almost $5 in the week after the prior Friday close.
The roll is a recurring calendar effect rather than a new fundamental shock.
Index roll pressure weighs on nearby cattle futures and cash bids in the short term, while the deferred contracts keep their premium.
wlj.netWLJNov 10, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
