June 8, 2017 / 8:34 PM / 3 months ago

LIVESTOCK-CME live cattle close mixed, hog futures higher

    By Theopolis Waters
    CHICAGO, June 8 (Reuters) - Chicago Mercantile Exchange live
cattle futures settled mixed on Thursday after an up-and-down
session, supported by futures' discounts to preliminary cash
prices but pressured by profit-taking, traders said.
    June         closed up 0.175 cent per pound at 131.375
cents, and August         down 0.150 cent at 124.025 cents.
    On Thursday, a small group of animals at the Fed Cattle
Exchange fetched $136.50 to $137.00 per cwt versus last week's
average top price of $132.17.
    About 6,000 head of market-ready, or cash, cattle on
Wednesday in the northern U.S. Plains brought $135 per cwt,
compared to roughly $137 there a week earlier.
    Investors expect packers to pay more for supplies this week
given their impressive profits and good wholesale beef demand
ahead of Father's Day meal preparations, said traders and
analysts.                          
    But beef demand typically subsides this time of year when
grocers tend to promote more pork and chicken for the summer
grilling season, said analsyts and traders.
    Profit-taking, technical selling and sporadic live cattle
futures selling pressured CME feeder cattle contracts.
    August feeders         ended 0.850 cent per pound lower at
153.950 cents.

    HIGHER HOG CONTRACTS    
    Thursday's strong cash and wholesale pork prices, along with
fund buying, rallied CME lean hogs, said traders.
    July futures led gainers after investors bought that
contract and sold June futures before it expires on June 14,
they said.
    June         closed up 0.400 cent per pound at 82.025 cents.
Most actively-traded July         ended 1.125 cents at 82.200
cents, and above the 10-day moving average of 81.568 cents.
    Packers need supplies, which are tightening seasonally,
while trying to take advantage of their highly-profitable
margins and brisk pork demand, a trader said.             
            

 (Reporting by Theopolis Waters; Editing by Tom Brown)
  

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