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LIVESTOCK-CME live cattle futures up 9th straight session
April 19, 2017 / 8:25 PM / 5 months ago

LIVESTOCK-CME live cattle futures up 9th straight session

    * Feeder cattle closes flat-firmer
    * Lean hogs again hit 6-month lows

    By Theopolis Waters
    CHICAGO, April 19 (Reuters) - Chicago Mercantile Exchange
live cattle futures        rose on Wednesday for the ninth
consecutive session, and hit a one-year high for a second day in
a row, after cash prices exceeded expectations, traders said. 
    April live cattle         closed 1.150 cents per pound
higher at 127.925 cents, and June         up 0.300 cent at
115.950 cents.
    On Wednesday packers in the U.S. Plains paid $130 to $133
per cwt for market-ready, or cash, cattle that last week brought
mostly $128, said feedlot sources. 
    Cattle at Wednesday morning's Fed Cattle Exchange, on
average, fetched $128.62 per cwt up from last week's lightly 
traded $126 average.
    "The retailer is buying meat and he's not afraid to spend
money to do it. That has given the packer the confidence to go
out a pay up for cattle," said CHS Hedging analyst Steve Wagner.
    He also cited lower cattle weights, which suggests ranchers
in parts of the Plains are sending animals to feedlots in a
timely fashion.  
    Wednesday morning's average wholesale beef price dropped 91
cents per cwt to $215.08 from Tuesday. Select cuts were up 31
cents to $202.51, the U.S. Department of Agriculture said.
    CME feeder cattle futures' premiums to the exchange's feeder
cattle index for April 18 at 136.64 cents weighed on the April
contract.
    Remaining feeder cattle contracts drew support from firmer
deferred-month live cattle futures.
    April feeder cattle         closed unchanged at 138.675
cents per pound. May         ended up 0.250 cent to 140.325
cents and August         0.775 cent higher at 142.950 cents.
 
    HOGS AGAIN HIT 6-MONTH LOW
    Downward-trending cash prices and Wednesday's soft wholesale
pork values pressed CME lean hog contracts         to six-month
lows for a second straight day, said traders.
    Thinly traded May         closed 1.275 cents per pound lower
at 65.875 cents. Most-actively traded June         ended 1.550
cents lower at 69.950 cents.
    Near-term supplies remain plentiful as packers process a
backlog of hogs resulting from plant closures over the Easter
holiday, said traders and analysts.
    They said ample seasonal hog numbers has periodically
allowed grocers to buy pork at lower cost as the spring grilling
season goes into high gear.
    Wednesday morning's average cash hog price in Iowa/Minnesota
was at $55.93 per cwt, 98 cents lower than on Tuesday, the USDA
said.
    U.S. government data on Wednesday morning showed the average
wholesale pork price down 36 cents per cwt from Tuesday to
$75.12.

 (Reporting by Theopolis Waters; Editing by David Gregorio)
  

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