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LIVESTOCK-CME live cattle climb as cash prices seen rising
November 27, 2017 / 9:25 PM / 15 days ago

LIVESTOCK-CME live cattle climb as cash prices seen rising

    By Karl Plume
    CHICAGO, Nov 27 (Reuters) - Chicago Mercantile Exchange live
cattle        futures rose on Monday as profitable packer
margins and firm beef prices fueled expectations that cash
cattle would trade at higher prices this week.
    December         live cattle finished up 1.250 cents per
pound at 119.825 cents after holding chart-based support at the
50-day moving average around $118.675. Actively-traded February
        ended 1.475 cents higher at 126.050 cents.
    "Folks are expecting the cash trade to be a little better
this week. Showlists are a little lower and I don't think they
(packers) got enough bought last week," said Schwieterman Inc
broker Domenic Varricchio.
    "Packers are making plenty of money so they're going to keep
feeding their money-making machine," he said.
    Slaughter-ready cattle at U.S. Plains feedlot markets traded
at $118 to $120 per cwt last week.
    Firm demand for beef as consumers turn away from turkey
following Thanksgiving feasts was also supportive to the cattle
market, traders and analysts said.
    Beef packer margins widened to an estimated $81.10 per head
on Monday, from $63.85 on Friday and $28.50 a week ago,
according to livestock marketing advisory service
HedgersEdge.com LLC.        
    Feeder cattle futures rose with the live cattle market and
as the price of corn, a key cattle input, fell for a second
straight trading session.
    Steady to higher feeder cattle prices at the closely tracked
weekly cash auction in Oklahoma City added further support.
            
    January         feeder cattle closed up 1.150 cents per
pound at 154.450 cents.
  
    HOGS RISE
    CME lean hog futures advanced on strong packer margins and
seasonally higher demand, with the post-Thanksgiving holiday
slaughter normally among the most active weeks of the year for
packing plants.
    Wholesale pork prices firmed on Monday and packer margins,
according to HedgersEdge, widened slightly to about $45.20 per
head, up more than $3 from a week ago.                 
    December         hogs ended 1.275 cents per pound higher at
64.525 cents and February         closed up 0.700 cent to 70.100
cents.

 (Reporting by Karl Plume; Editing by David Gregorio)
  

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