June 7, 2018 / 7:29 PM / 2 months ago

LIVESTOCK-CME hogs mostly lower on profit-taking, trade worries

    CHICAGO, June 7 (Reuters) - Most Chicago Mercantile Exchange
hog contracts ended lower on Thursday after profit-taking and
uneasiness over U.S. trade with Mexico pared some of Wednesday's
gains, said traders.
   On Tuesday Mexico's economy minister said that country will
import more pork from Europe after placing a 20 percent duty on
U.S. pork in response to Washington's higher tariffs on Mexican
steel and aluminum.             
   "Trade issues are hanging over the market. Without that
influence we'd have the July contract at 85 cents per pound,"
said Allendale Inc. chief strategist Rich Nelson.
    June         hogs, which will expire on June 14, closed up
0.425 cent per pound at 78.575 cents. Most actively-traded July 
        ended 0.500 cent lower at 79.450 cents. August        
finished 1.200 cents lower at 76.425 cents.
    Thinly-traded June hog futures benefited from higher prices
for wholesale pork and slaughter ready, or cash, hogs, said
traders and analysts.                 
    Packers are entering a seasonal decline in hog numbers as
grocers purchase pork for spring grilling and June 17 Father's
Day meat advertisements, they said.          
    
    MOSTLY WEAK LIVE CATTLE FUTURES
    CME live cattle closed generally weak, pressured by
profit-taking and forecasts for increased supplies ahead, said
traders.
     They said firmer cash price expectations for this week
underpinned the June contract.
    "Most people are still holding the idea that this is a small
bump higher in (cash) prices in the face of what will be a surge
in numbers," said Nelson. 
    June         live cattle closed up 0.075 cent per pound at
108.375 cents. August         ended 0.425 cent lower at 104.150
cents. October         finished down 0.025 cent at 107.150
cents. 
    Market bulls were encouraged by packers that raised bids for
market-ready, or cash, cattle in the U.S. Plains on Thursday to
$110 per cwt from $107 earlier this week. Feedlots priced cattle
at $115.
    The bulk of cash cattle in the Plains last week fetched $110
per cwt.
    Cash cattle prices may have bottomed out after declines in
recent weeks, a trader said. Retailers and restaurants may slow
beef purchases after they fill inventories for Father's Day, he
added.
   Profit-taking and weaker deferred live cattle futures
pressured CME feeder cattle contracts.
   August         closed down 0.425 cent per pound at 146.325
cents.

 (Reporting by Theopolis Waters
Editing by Chizu Nomiyama)
  
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