June 23, 2017 / 10:28 PM / 2 months ago

LIVESTOCK-CME live cattle rallies before USDA report

    * Feeder cattle contracts finish higher
    * USDA report mildly bearish for futures Monday
    * Mostly lower hog futures settlement

    By Theopolis Waters
    CHICAGO, June 23 (Reuters) - Chicago Mercantile Exchange
live cattle futures closed higher on Friday, with support from
buy stops and late-session short-covering before the afternoon's
U.S. Department of Agriculture monthly Cattle-On-Feed report,
said traders.
    Analysts viewed the report as mildly bearish for live cattle
 futures on Monday due to May cattle placements that hit a
10-year high for the month, but were still fewer than some had
expected.             
    June        , which will expire on June 30, closed 0.575
cent per pound higher at 119.200 cents. Most actively traded 
August         finished 1.000 cents higher 115.275 cents.
    Futures drew more support from their discounts to this
week's cash prices that came in lower than last week, given
sufficient supplies and slack seasonal wholesale beef demand,
said traders.                         
    This week market-ready, or cash, cattle in the U.S. Plains
brought $118 to $123 per cwt, down from $127 to $134 a week
earlier, said feedlot sources.
    Investors will monitor next week's cash prices as beef
demand tends to struggle this time of year and packers plan to
shutter plants over the U.S. Fourth of July holiday.  
    Softer corn prices and live cattle futures buying boosted
CME feeder cattle futures.
    August feeders         ended 1.500 cents per pound higher at
144.950 cents.

    HOGS CLOSE MOSTLY LOWER   
    Technical selling and continued cash hog price weakness
pressured most CME lean hog contracts, said traders.
    They said thinly traded July drew support from its discount
to the exchange's hog index for June 21 at 89.30 cents.
    July         ended up 0.275 cent per pound at 85.300 cents. 
August         closed 1.225 cents lower at 78.650 cents, and
below the 40-day moving average of 79.313 cents. October
finished         0.675 cent lower at 68.200 cents, below the
20-day moving average of 68.505 cents.
    Farmers are sending hogs to market ahead of schedule knowing
prices for them tend to decline heading into major U.S.
holidays, traders and analysts said.             
    They said a few grocers are buying pork for July Fourth
holiday cookouts and ahead of plant disruptions during the
holiday.             

 (Reporting by Theopolis Waters; Editing by Richard Chang)
  

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