June 22, 2017 / 10:01 PM / 6 months ago

LIVESTOCK-CME live cattle sags with cash, beef prices

    * Feeder cattle, hog contracts close lower
    * Storage data bullish cattle, bearish hogs

    By Theopolis Waters
    CHICAGO, June 22 (Reuters) - Chicago Mercantile Exchange
live cattle futures        fell for a second straight day on
Thursday, pressured by fallen cash and wholesale beef values,
said traders.
    June        , which will expire on June 30, closed 0.875
cent per pound lower at 118.625 cents. Most actively-traded 
August         finished 1.075 cents lower at 114.275 cents.
    So far this week market-ready, or cash, cattle in the
southern U.S. Plains sold from mostly $120 to $123 per cwt, down
from $127 to $133 in the region last week, said feedlot sources.
    Processors paid less for supplies as beef prices at
wholesale decline seasonally, said traders and analysts.
    Packers are buying cattle without having to compete for
them, which has significantly expanded their margins, a trader
    Thursday afternoon's U.S. Department of Agriculture (USDA)
monthly cold storage report showed May total beef stocks at
412.87 million pounds, down from analysts' projected average of
438.6 million.             
    Some investors might cover short positions before the
weekend following the two-day futures slide, while others adjust
positions before Friday's USDA monthly Cattle-On-Feed report.
    Live cattle futures losses and lower cash feeder cattle
prices undercut CME feeder cattle contracts.
    August feeders         ended 1.200 cents per pound lower at
143.450 cents.

    CME lean hogs        settled in bearish territory for the
first time in five sessions, pressured by technical selling and 
Thursday's cash and wholesale pork price retreat, said traders. 
    July         ended 1.050 cents lower at 85.025 cents. 
August         2.350 cents lower at 79.875 cents, and below the
10-day moving average of 80.595 cents.
    Hog numbers may be rising counter seasonally as moderating
temperatures in parts of the Midwest causes pigs to grow
quicker, making them more available to processors, said traders
and analsyts.             
    They said wholesale pork prices tend to top out around late
June, after retailers fill inventories for U.S. Fourth of July 
holiday grilling advertisements.              
    The U.S. government on Thursday put total pork in cold
storage last month at 592.127 million pounds, up from the 572.0
million average forecast.

 (Reporting by Theopolis Waters; Editing by David Gregorio)

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