December 6, 2018 / 10:50 PM / 5 months ago

LIVESTOCK-CME lean hogs drop on U.S.-China trade worry after Huawei arrest

    By Karl Plume
    CHICAGO, Dec 6 (Reuters) - U.S. lean hog futures fell for
the third time in four sessions on Thursday on worries about
rising U.S.-China trade tensions following the arrest of a
Chinese executive in Canada, but the market clawed back most of
the losses by the close.
    After optimism that trade talks last weekend between
Washington and Beijing could lead to a trade deal, the arrest of
a senior executive from China's Huawei Technologies Co Ltd
         again stoked concerns that progress in trade talks
could be derailed.             
    The White House has said the trade detente included an
agreement by China to immediately buy U.S. agricultural
products, among which would likely be pork.
    Chicago Mercantile Exchange February lean hogs       
settled down 0.850 cent at 66.900 cents per pound after earlier
sinking as low as 65.250 cents. April hogs        shed 0.850
cent to 71.275 cents.
    "The market bent on the concerns that there was a new issue
that popped up, but it didn't break," said Don Roose, president
of U.S. Commodities. "The market came back from the lows so
there is still that optimism that an agreement is in the works."
    Traders will be monitoring U.S. Department of Agriculture
weekly export sales data on Friday morning for signs of
continued pork purchases by China after the world's top hog and
pork market made unexpected purchases a week earlier.
    Live cattle futures slid lower in a profit-taking setback
after two days of gains fueled by a firm tone to the cash market
and worries about harsh weather in the Plains feedlot areas.
    Active cash market trading has yet to develop this week,
although prices are expected to be at least steady with last
week's sales at $117 to $118 per cwt.
    CME February live cattle futures         settled down 0.575
cent at 121.800 cents per pound, holding chart support at its
50-day moving average.
    Feeder cattle futures followed live cattle lower. January
futures         settled down 1.275 cents at 144.200 cents.

 (Reporting by Karl Plume, Editing by Rosalba O'Brien)
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