October 23, 2017 / 7:13 PM / a year ago

LIVESTOCK-Profit-taking, cash prices drop CME hog futures

    * Live cattle ends mostly firmer
    * Feeder cattle closes flat to weaker

    By Theopolis Waters
    CHICAGO, Oct 23 (Reuters) - Chicago Mercantile Exchange lean
hogs closed lower on Monday, pressured by profit-taking
following the morning's cash price drop, traders said.
     December         hogs finished 1.325 cents per pound lower
at 63.525 cents, and February         ended 0.875 cent lower at
68.225 cents.
     Some investors sold futures after analysts predicted a
480,000-plus head hog slaughter on Monday. The U.S. Department
of Agriculture estimated last Monday's kill at 446,000 head.
     "Monday's big kill was due to a major Midwest packer making
up downtime after being closed a couple of days last week for
repairs," a hog merchant said. The facility actually slaughtered
 on Sunday and USDA added those numbers into Monday's data, he
     The merchant was skeptical that Monday morning's lower cash
prices signaled a market top because of the low sales volume.
     Wholesale pork demand has held steady during October,
National Pork Month. Grocers are preparing to advertise more
beef in early November, said analysts and traders.          

    Most CME live cattle contracts closed up slightly after
investors bought deferred months and simultaneously sold October
futures that will expire on Oct. 31, said traders.
    As the session progressed, futures shrugged off early 
losses, led by last Friday's bearish USDA monthly Cattle-On-Feed
cattle report.             
    October         live cattle finished down 0.150 cent per
pound at 111.525 cents. Most actively traded December        
closed up 0.150 cent at 116.750 cents. February         ended
0.300 cent higher at 121.575.
    The October contract also factored in last week's $110 to
$111 per cwt cash cattle sales in the U.S. Plains. Cattle there
a week earlier brought mostly $111.
    Market bulls expect steady-to-better cash prices this week
because of good packer margins and increased beef demand next
    Bearish traders believe some processors will resist spending
more for cattle with the prospect of a supply buildup through
the rest of the year - as implied by Friday's USDA cattle
    Higher corn futures and steady-to-lower cash feeder cattle
prices weighed on CME live cattle.
    October         ended unchanged at 153.625 cents per pound,
and November <1FCX7 closed down 0.350 cent to 152.725 cents.

 (Reporting by Theopolis Waters; Editing by Dan Grebler)
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