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LIVESTOCK-CME live cattle rebounds on cash, beef prices
November 21, 2017 / 10:18 PM / 20 days ago

LIVESTOCK-CME live cattle rebounds on cash, beef prices

    * Feeder cattle ends up sharply
    * Lean hog market closes lower
    * USDA cold storage report on Wednesday

    By Theopolis Waters
    CHICAGO, Nov 21 (Reuters) - Chicago Mercantile Exchange live
cattle futures on Tuesday rallied from Monday's losses, ignited
by short-covering as investors digested initial cash prices and
firmer wholesale beef values, said traders.
    Technical buying contributed to market advances along with
unwinding of Monday's short live cattle futures long hog
spreads, they said.
    December         live cattle finished up 0.875 cent per
pound at 117.975 cents. February         ended 1.025 cents
higher at 124.050 cents and above the 40-day moving average of
123.790 cents.
    On Tuesday slaughter-ready, or cash, cattle in the U.S. 
Plains traded at $118 per cwt, down $1 from a week ago in the
U.S. Plains. 
    Typically packers and feedlots buy and sell cattle after
Wednesday, but the holiday moved those negotiations ahead of
schedule, a trader said.
    Processors resisted paying more for cattle than last week
while trying to improve their margins and sell beef to retailers
that are waiting to see how much product moves over the
Thanksgiving holiday.                  
    Beef and pork packing plants will be closed over the
holiday, thereby reducing their need for supplies.
    On Wednesday at noon EST (1700 GMT), the U.S. Department of
Agriculture will issue the monthly cold storage report that will
include October total beef and pork inventories.
    A survey of analysts, on average, projected last month's
total beef stocks at 489.4 million pounds and 595.1 million for
pork.
    Short-covering and live cattle futures buying pulled up CME
live cattle contracts.
    January         feeder cattle closed up 2.075 cents per
pound at 151.625 cents.
    
    HOG FUTURES FINISH LOWER
    CME lean hogs posted losses tied to technical selling and
spreads out of hog futures into live cattle contracts, said
traders.
    December         hogs ended down 1.325 cents per pound to
60.700 cents and below the 100-day moving average of 61.612
cents. February         closed 1.525 cents lower at 66.950
cents.
    Retailers are buying pork sparingly until they can gauge
post-holiday product movement, while a few packers bought hogs
for next week's production schedule, a trader said.
                 

 (Reporting by Theopolis Waters; Editing by Tom Brown)
  

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