* Live cattle contracts close mixed
* Feeder cattle ends mostly weaker
By Theopolis Waters
CHICAGO, Oct 6 Chicago Mercantile Exchange lean
hogs closed higher on Thursday on short-covering and bargain
buying after futures tumbled to a seven-year low on
Wednesday, traders said.
CME October lean hogs, which will expire on Oct. 14, led
advances due to a discount to the exchange's hog index for Sept.
4 at 54.85 cents.
October closed up 2.150 cents per pound to 50.375
cents. Most-actively traded December ended up 1.725
cents to 43.175 cents.
Futures gained despite softer cash and wholesale pork prices
due to seasonally abundant supplies.
From Monday to Thursday packers processed 1.756 million
hogs, 20,000 more than a year ago during the same period,
according to U.S. Department of Agriculture estimates.
Slaughter-ready, or cash, hog prices in Iowa/Minnesota on
Thursday afternoon slipped 11 cents per cwt from Wednesday to
$47.24, the USDA said.
Separate USDA data on Thursday afternoon showed the
wholesale pork price dropped 30 cents per cwt from Wednesday to
Investors are keeping close tabs as the East Coast braces
for Hurricane Matthew that could disrupt livestock production
and meat demand in the region.
"The storm will probably hurt meat demand on the East Coast
depending on how it plays out," said David Maloni chief analyst
with the American Restaurant Association. But, homes that may
lose electricity will likely restock their refrigerators after
power is restored, he said.
UNEVEN LIVE CATTLE SETTLEMENT
CME live cattle futures settled mixed after traders sold the
October contract and simultaneously bought deferred months in a
trading strategy known as bear spreading, said traders.
October ended down 0.425 cent per pound at 102.425
cents. December was up 0.050 cent to 103.100 cents, and
February up 0.100 cent to 103.675 cents.
The October contract was in line with this week's prices for
slaughter-ready, or cash, cattle, a trader said. Sluggish
wholesale beef demand further weighed on October futures, he
This week cash cattle in the U.S. Plains moved at $101 to
$103 per cwt, steady to $3 lower from last week, said feedlot
Thursday afternoon's choice beef price fell 62 cents per cwt
from Wednesday to $183.48. Select cuts were down $1.20 to
$175.06, the U.S. government said.
CME feeder cattle closed mixed, supported by lower corn
prices but pressured by back-month live cattle futures weakness.
October feeder cattle closed up 0.375 cent per pound
to 127.825 cents, and November down 0.075 cent to
(Reporting by Theopolis Waters; Editing by Chris Reese)