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LIVESTOCK-Supply jitters extend CME live cattle futures losses
August 10, 2017 / 9:06 PM / 4 months ago

LIVESTOCK-Supply jitters extend CME live cattle futures losses

    * Feeder cattle again end lower
    * Lean hogs finish mostly weaker

    By Theopolis Waters
    CHICAGO, Aug 10 (Reuters) - Chicago Mercantile Exchange live
cattle futures        fell for a fourth straight session on
Thursday, dragged down by growing worries about hefty near-term
supplies, traders said.
    "We've got more numbers (cattle) out here and more numbers
coming, and that's just a Damocles sword over this market," said
Top Third Marketing analyst Mark Gold.
    Fund liquidation added to market losses after some contracts
drifted below key technical support levels.
    August         ended 1.150 cents per pound lower at 108.850
cents. October         closed 1.450 cents lower at 106.600, and
below the 200-day moving average of 107.069 cents.
    This week beef processors paid $114 to $116 per cwt for
slaughter-ready, or cash, cattle in the U.S. Plains that a week
earlier sold for $116 to $119.
    Packers avoided bidding up for plentiful supplies of cattle
that grew heavier during a break in hot summer weather in parts
of the Plains, a trader said.
    Cooler temperatures tend to allow cattle to gain weight
quicker, resulting in more tonnage at a time when beef demand
continues to struggle seasonally.           
    From Monday to Thursday the U.S. Department of Agriculture
estimated that packers processed 472,000 cattle, 23,000 more
than a year ago.
    Bargain hunters are eager to buy futures because they are
undervalued compared to cash prices, but remain cautious due to
increased supplies, the trader said.
    Livestock market participants monitored the steep U.S. stock
market selloff as tensions escalate between the U.S. and North
Korea, a Chinese ally.
    China is a major importer of pork from the United States and
has allowed in U.S. beef for the first time in 14 years.
    CME feeder cattle        slid for a fifth consecutive
session on more selling after contracts settled down Wednesday's
4.500-cent daily limit, which expanded to 6.750 on Thursday.
    Feeder cattle futures will resume their normal 4.500-cent 
limit on Friday.
    August feeders         closed 0.350 cent per pound lower at
141.175 cents.
    
    MOSTLY SOFTER HOG MARKET CLOSE
    CME lean hogs generally closed weaker on profit-taking and
as ample supplies continued to pressure prices for hogs ready
for processing, said traders.
    The August contract was supported by its price discount
compared to CME's hog index for Aug. 8 at 85.62 cents, traders
said.
    August        , which expires on Aug. 14, closed up 0.325
cent per pound to 84.450 cents. Most actively traded October
        ended down 0.275 cent to 67.975 cents, and December
        0.250 cent lower at 62.700 cents.

 (Reporting by Theopolis Waters; Editing by James Dalgleish)
  

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