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LIVESTOCK-Cattle fall for 3rd session on technicals, fears of lower beef
May 11, 2017 / 9:53 PM / 7 months ago

LIVESTOCK-Cattle fall for 3rd session on technicals, fears of lower beef

    By Michael Hirtzer
    CHICAGO, May 11 (Reuters) - U.S. live cattle futures
declined for the third straight session on Thursday, pressured
by technical selling linked to worries that rising wholesale
beef prices were nearing a seasonal peak, traders and analysts
    Both live cattle and feeder cattle futures touched their
lowest in about two weeks, before trimming losses. Lean hogs
were mostly lower at the Chicago Mercantile Exchange.
    Demand for cattle in cash markets remained robust as beef
packers took advantage on the highest wholesale beef prices
since 2015. Retailers were stocking meat cases ahead of the U.S.
Memorial Day holiday on May 29 - the unofficial start of the
summer outdoor grilling season.
    However, beef prices typically ease as buying slows
following the holiday. The U.S. Department of Agriculture after
the close of trading said choice-grade wholesale beef was up
$2.28 at $246.85 per cwt.           
    CME June live cattle        settled 0.275 cent lower at
123.925 cents per pound and August cattle        eased 0.725
cent to 119.675 cents.
    "The chart looks miserable and the new lows for the move
kept the buyers shy," Schwieterman Inc broker Domenic Varricchio
said of cattle.
    Investors continued to roll out of June cattle and hog
positions and into deferred months. That "roll" was highlighted
by a drop of 13,681 contracts in June cattle and an open
interest increase of 8,731 new positions in August cattle during
Wednesday's session, CME Group data showed on Thursday.
    CME August feeder cattle        were down 1.600 cents to
147.325 cents per pound.
    CME June hogs        were down 0.150 cent to 77.050 cents
and July hogs        down 0.200 cent to 77.075 cents. The CME
Group's index of the U.S. cash hog market        climbed 67.64
cents, highest in a month. Cash hogs' discount to futures
weighed on CME hog futures, Varricchio said.
    "June's just a little too far above the index," he said,
pointing to the nearly 10-cent premium in futures.
    USDA said wholesale pork was up 73 cents to 81.85 cents per
pound, led by a spike in pork belly prices.         

 (Reporting by Michael Hirtzer in Chicago)

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