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LIVESTOCK-CME live cattle climb 7th straight session to new highs
April 17, 2017 / 8:36 PM / 7 months ago

LIVESTOCK-CME live cattle climb 7th straight session to new highs

    * Feeder cattle up 6th straight session
    * Lean hog contracts finish weaker

    By Theopolis Waters
    CHICAGO, April 17 (Reuters) - Chicago Mercantile Exchange
live cattle        rose on Monday for the seventh consecutive
session, boosted by improved wholesale beef demand and futures'
discounts to recent cash prices, traders said.
    They said speculative buying and buy stops drove deferred
contracts to fresh highs.
    April live cattle         closed 1.050 cents per pound
higher at 126.425 cents. June         ended up 0.875 cent to
115.575 cents and hit a new high of 115.900 cents.
    Last week slaughter-ready, or cash, cattle in the U.S.
Plains brought mostly $128 to $129 per cwt, up from $124 to $126
the week before.
    Monday morning's average wholesale beef price, or cutout,
jumped $2.05 per cwt to $214.13 from Friday. Select cuts rose
$1.30 to $200.78, the U.S. Department of Agriculture said.
    Tight supplies last week in parts of the U.S. Plain prompted
packers to pay more for cattle and helped support beef cutout
values, a trader said.
    However Allendale Inc chief strategist Rich Nelson said last
week's bigger-than-anticipated cattle slaughter might modestly
pressure wholesale beef prices soon.
    Market participants await Wednesday's sale of roughly 4,400
animals at the Fed Cattle exchange.
    CME feeder cattle        finished higher for sixth straight
session, with back months also posting new highs, on live cattle
futures buying and higher cash feeder cattle prices.
    April feeder cattle         closed 1.250 cents per pound 
higher at 139.050 cents.
    Lean hog futures at the CME were weakened by lower cash
prices after packers filled near-term inventories well in
advance of the Easter holiday, said traders.
    Investors bought deferred contracts and sold May futures
because of its sizable premium to current cash prices and the
exchange's hog index for April 13 at 63.19 cents.
    April hogs        , which expired at noon CDT (1700 GMT),
settled 0.475 cent per pound lower at 61.975 cents. May        
closed 0.575 cent lower at 67.725 cents. Most-actively traded
June         ended down 0.150 cent to 72.350 cents.
    Monday afternoon's average cash hog price in Iowa/Minnesota
at $56.75 per cwt slipped 18 cents from Friday, the USDA said.
    Meanwhile Easter-holiday plant closures, and retail meat
buying for spring grilling, may help underpin wholesale pork
values this week, said traders and analysts.
    USDA estimated Monday hog slaughter at 300,000 head, 142,000
fewer than last week.
    U.S. government data on Monday afternoon showed the average
wholesale pork price up 38 cents per cwt from Friday to $74.96.

 (Reporting by Theopolis Waters; Editing by David Gregorio)

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