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LIVESTOCK-Short-covering pulls up CME live cattle futures
September 27, 2017 / 8:41 PM / 2 months ago

LIVESTOCK-Short-covering pulls up CME live cattle futures

    By Theopolis Waters
    CHICAGO, Sept 27 (Reuters) - Chicago Mercantile Exchange
live cattle futures on Wednesday reversed some of their recent
losses, with strength from technical buying and investors who
covered previously held short positions, said traders.
    "Anyone who was short the market took a little money in
profits," said Oak Investment Group President Joe Ocrant.
    Wednesday morning's wholesale beef price setback, and
uncertainty regarding what packers will pay for slaughter-ready
or cash cattle this week, capped October future's advances.
    October         live cattle finished up 0.300 cent per pound
to 108.575 cents. December         closed 1.425 cents higher at
114.900 cents, and above the 100-day moving average of 114.636
cents.
    Market participants were left without cash price direction
following the lack of animal sales at Wednesday morning's Fed
Cattle Exchange.
    Packers in Texas and Kansas tabled bids of $104 per cwt
against sellers who are asking as much as $111 for their cattle.
Cash cattle last week in the U.S. Plains brought $108 to $109.
    Profits for packers remain extremely high, which is
supportive for cash prices, said traders.        
    But, they said, increased supplies in the coming months and
potentially lackluster beef demand are bearish cash price
factors.                        
    Higher cash feeder steer prices, live cattle futures
turnaround and technical buying rallied CME feeder cattle
contracts.
   September        , which will expire on Thursday, closed
1.825 cents per pound higher at 152.400 cents. Most actively
traded October         ended 2.050 cents higher at 152.700
cents.
   
    HOG FUTURES REBOUND
    Investors bought deferred contracts and simultaneously sold
October futures on position squaring in advance of the U.S.
Department of Agriculture's quarterly hog report on Thursday at
2 p.m. CDT.             
    Uneasiness about cash prices, due to ample supplies, limited
October futures buying interest that earlier dropped the
contract to a new low of 54.925 cents.                    
    Fund buying surfaced after deferred months punched through
key technical resistance levels.
    October         ended up 0.150 cent per pound to 55.400
cents. December         finished 1.550 cents higher at 59.650
cents and surpassed the 20-day moving average of 58.285 cents.

 (Reporting by Theopolis Waters; Editing by James Dalgleish)
  

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