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LIVESTOCK-Cattle fall 2 pct on profit-taking reversal; hogs firm
May 9, 2017 / 8:43 PM / 7 months ago

LIVESTOCK-Cattle fall 2 pct on profit-taking reversal; hogs firm

    By Michael Hirtzer
    CHICAGO, May 9 (Reuters) - U.S. live cattle and feeder
cattle futures declined 2 percent or more on Tuesday, reversing
from earlier gains as traders took profits on concern that
surging prices could hurt beef demand, traders and analysts
    Lean hog futures were higher at the Chicago Mercantile
Exchange but finished well off their session peaks, succumbing
to pressure from the drop in cattle.
    CME June live cattle futures        settled 2.800 cents
lower at 124.975 cents per pound and August futures        down
2.600 cents to 120.650 cents. Investors continued to exit
positions in June, rolling into deferred months on the third of
the five-day roll for traders tracking Standard & Poor's Goldman
Sachs Commodity Index          .
    Cattle rose throughout most of April, hitting the highest
levels in more than a year before falling sharply late last
week. Futures resumed their rally on Monday and the August
contract appeared set to test last week's high of 127.500 cents,
before it turned lower.
    "Funds are record-long in cattle and we are starting to see
profit-taking," said U.S. Commodities analyst Don Roose.
"There's a real concern on whether you can move the beef at
these higher prices at a time of year demand is the best."
    Retailers were buying the meat they will put on sale during
the U.S. Memorial Day holiday weekend at the end of May, the
unofficial kickoff of the summer outdoor grilling season.
    Wholesale beef prices are the highest since September 2015,
according to U.S. Department of Agriculture data. Cheaper prices
for pork and poultry could steal away market share from beef,
Roose said.
    CME August feeder cattle        settled down their 4.500
cent price limit at 152.150 cents per pound.  
    CME June lean hogs        were unchanged at 77.375 cents per
pound after earlier reaching 78.425, highest since March 16.
July hogs        were up 0.275 cent to 77.500 cents.

 (Reporting by Michael Hirtzer in Chicago; Editing by David

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