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LIVESTOCK-Hogs tumble on pork price declines; cattle extend gains
February 22, 2017 / 9:35 PM / 10 months ago

LIVESTOCK-Hogs tumble on pork price declines; cattle extend gains

    By Michael Hirtzer
    CHICAGO, Feb 22 (Reuters) - Chicago Mercantile Exchange lean
hog futures        fell 3.8 percent for their biggest daily loss
in about a month on Wednesday, pulled down by investment fund
selling tied to lower cash hog and wholesale pork prices,
traders said.
    Live cattle futures        rose, extending gains to the
fourth straight session on support from higher cash cattle
prices, while feeder cattle futures        were about flat.
    Front-month CME April hogs        tumbled 2.600 cents to
67.750 cents per pound, lowest since Jan. 27. The contract fell
below its 50-day moving average for the first time since
November.
    "It's hard to argue with the technicals when the funds start
selling," said independent hog trader Dan Norcini.    
    Hog futures had climbed to a roughly eight-month high on
Feb. 8 but have trended lower since, with investment funds
reducing their net long position on ideas of more plentiful
supplies in the coming weeks.
    "These guys think cash hog prices are going to take a
beating," Norcini added.
    U.S. Department of Agriculture data released after the close
of trading showed wholesale pork down $4.30 to $80.24 per cwt.
Prices for pork bellies that are sliced into bacon plunged
$24.54 to $153.27 per cwt, about a one-month low.
    Hogs traded 60 cents lower to an average of $72.95 per cwt
in Iowa and southern Minnesota, USDA said.                  
    USDA on Thursday will release monthly cold storage data,
including pork bellies. In January, USDA showed 17.8 million
pounds of bellies in storage, the smallest since 1957.
            
     
    CASH CATTLE GAINS
    Cattle traded as much as $5 per cwt higher in Texas and
Nebraska cash markets, suggesting beef packers were short of
supplies. Wholesale beef prices also rose, with choice-grade
cuts gaining $2.72 to $194.53 per cwt, according to USDA.
                   
    The higher cash cattle prices propelled futures higher.
    Front-month February live cattle futures        jumped 2.200
cents to 121.300 cents per pound, touching the highest levels
since March. Traders were rolling out of February cattle
positions ahead of expiry on Feb. 28. Most-active April cattle
       touched the highest levels in about a month, settling up
0.775 cent to 116.075 cents per pound.
    CME March feeder cattle        were up 0.400 cent to 125.525
cents per pound.    
            

 (Reporting by Michael Hirtzer; Editing by Meredith Mazzilli)
  

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