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LIVESTOCK-Hog futures fall to 11-month low on cash market declines
September 12, 2017 / 9:04 PM / 10 days ago

LIVESTOCK-Hog futures fall to 11-month low on cash market declines

    By Michael Hirtzer
    CHICAGO, Sept 12 (Reuters) - Chicago Mercantile Exchange
lean hog futures         tumbled to an 11-month low in a
bear-spreading selloff linked to big U.S. hog supplies and
declines in cash markets, traders said.
    Live cattle futures         also eased on spreading and
worries beef packers might be hesitant to pay higher prices for
cattle when supplies were abundant.
    The U.S. hog herd was nearly record-large and pork packers
were able to buy what they needed without bidding aggressively
for the animals.
    Hogs in the top cash market of Iowa and southern Minnesota
fell $1.11 to an average of $55.88 per cwt, according to the
U.S. Department of Agriculture. The CME's index of the cash hog
market        fell to a four-month low.
    "It's tough to find anything supportive for hogs, at least
in the near term," said Steiner Consulting Group analyst Altin
Kalo. "The cash market keeps coming down and that's what people
are focused on."
    CME October lean hogs        settled 2.125 cents lower at
59.450 cents per pound, a decline of more than 3 percent. The
contract finished just above its session low of 59.225 cents,
which was its lowest level since Oct. 3, 2016.
    Tuesday was the third of the five-day roll for investors
tracking the Standard & Poor's Goldman Sacks Commodity Index
         , in which traders rolled out of October and into
December contracts. 
    CME October live cattle futures        were down 0.925 cent
at 106.275 cents per pound and December cattle        was down
1.325 cents at 111.550 cents.
    "There isn't a push on the packer side to go out and chase
cattle. Until that changes, the cattle market will bob around,"
Kalo said.
    CME October feeder cattle futures        were down 0.200
cent at 149.150 cents per pound, easing slightly after reaching
a roughly one-month high of 149.875 cents.
    USDA in a monthly supply and demand report reduced its 2017
U.S. beef production estimate to 26.63 billion pounds, from
26.77 billion pounds in August. U.S. pork production was
estimated at 25.86 billion pounds this year, up from a forecast
of 25.82 billion pounds last month.          

    

 (Reporting by Michael Hirtzer in Chicago; Editing by Matthew
Lewis)
  

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