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LIVESTOCK-Cattle, hog futures jump on spreading, packer demand
October 10, 2017 / 9:12 PM / 2 months ago

LIVESTOCK-Cattle, hog futures jump on spreading, packer demand

    By Michael Hirtzer
    CHICAGO, Oct 10 (Reuters) - U.S. live cattle         and
lean hog futures         rose more than 1 percent on Tuesday,
lifted by spreading and investment fund buying backed up by
robust demand from meat packers, traders and analysts said.
    Beef and pork packers were capturing big profit margins
given higher meat prices and comparatively lower prices for the
animals they slaughter. Supplies of both cattle and hogs are
large and the packers were willing to pay slightly elevated
levels to encourage producers to bring their animals to market.
    "The packers are making money killing and they have to pay
up to get cattle," said Schwieterman Inc broker Domenic
Varricchio.
    Chicago Mercantile Exchange October live cattle futures
       was up 2.275 cents to 113.700 cents per pound, gaining on
the more active December contract as investors continued to exit
short positions in the October.
    December cattle        finished up 1.875 cents to 118.800
cents per pound, highest since July 21.
    Varricchio said traders were building options positions at
the December strike price of 124 cents per pound, suggesting
some investors anticipated even higher prices. 
    Traders also were awaiting deals this week in U.S. Plains
cash cattle markets. About 1,400 cattle would be offered at the
weekly Fed Cattle Exchange online auction on Wednesday,
according to the auction website.
    CME November feeder cattle futures        finished up 0.650
cent to 156.150 cents per pound. 
    CME October lean hogs        were up 1.150 cents to 60.175
cents per pound and most active December hogs        up 0.600
cent to 61.550 cents.
    Wholesale pork prices were slightly higher and choice-grade
beef prices lower, according to the U.S. Department of
Agriculture.                    
    Hogs traded 80 cents higher to $55.22 per cwt in the top
cash market of Iowa and southern Minnesota, USDA said.         

 (Reporting by Michael Hirtzer in Chicago; Editing by James
Dalgleish)
  

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