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LIVESTOCK-CME live cattle hold modest gains, hogs end lower
May 1, 2017 / 8:29 PM / 6 months ago

LIVESTOCK-CME live cattle hold modest gains, hogs end lower

    By Theopolis Waters
    CHICAGO, May 1 (Reuters) - Chicago Mercantile Exchange
nearby live cattle contracts on Monday settled with modest
gains, supported by their discounts to last week's futures
prices and robust wholesale beef demand, said traders.
    They said profit-taking, after futures spiked to new highs
earlier in the session, capped nearby market advances and
pressured other trading months.
    June         ended up 0.100 cent per pound to 124.125 cents
and posted a new high of 125.325 cents. August         closed up
0.125 cent to 120.175 cents and hit a new high of 121.150 cents.
    Monday morning's average wholesale beef price surged $2.42
per cwt to $224.20 from Friday. Select cuts rose $1.32 to
$209.00, the U.S. Department of Agriculture said.
    Last week market-ready, or cash, cattle in the U.S. Plains
fetched $134 to $136 per cwt, up from $130 to $133 a week
earlier.
    Blizzard conditions and heavy rains in parts of the Plains
over the weekend slowed cattle deliveries, said analysts and
traders. They said excessive moisture created mud in feedlots,
making it difficult to sort and load animals.
    USDA estimated Monday's cattle slaughter at 107,000 head,
8,000 fewer than a week ago.
    Higher cash prices last week shaved packer profits, making
them less likely to actively compete for cattle this week, a
trader said.
    Investors await Wednesday's Fed Cattle Exchange sale of
roughly 1,600 animals. Cattle there last week, on average,
brought as much as $131.68 per cwt.
    Profit-taking and deferred-month live cattle futures
weakness dropped CME feeder cattle. 
    May feeder cattle         ended 0.950 cent per pound lower
at 148.600 cents.
     
    LOWER HOG SETTLEMENT 
    Profit-taking and Monday morning's lower cash prices
pressured CME lean hogs, said traders.
    They said futures' premiums to the exchange's hog index for
April 27 at 59.64 cents exerted additional market pressure.
    May         closed 0.850 cent per pound lower at 66.125
cents. Most-actively traded June         ended 0.725 cent lower
at 73.275 cents.
    Monday morning's average cash hog price in Iowa/Minnesota
was at $55.37 per cwt, down 87 cents from Friday in extremely
light volume, the USDA said.
    Hog numbers have declined seasonally which could support
cash prices, a trader said.
    USDA quoted Monday morning's average wholesale pork price up
43 cents per cwt from Friday to $74.89, mostly helped by $4.28
higher pork bellies.
    Packers on Monday processed 421,000 hogs, 21,000 fewer than
a week ago, according to USDA estimates.

 (Reporting by Theopolis Waters; Editing by James Dalgleish)
  

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