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LIVESTOCK-Cattle tumble in technical selloff after contract highs
June 6, 2017 / 9:32 PM / 6 months ago

LIVESTOCK-Cattle tumble in technical selloff after contract highs

    By Michael Hirtzer
    CHICAGO, June 6 (Reuters) - U.S. live cattle futures        
fell more than 1 percent on Tuesday, reversing from earlier
life-of-contract highs on pressure from investment fund and
technical selling, traders and analysts said.
    Feeder cattle futures         declined by their daily price
limit of 4.500 cents per pound while lean hog futures        
were mostly 1 percent higher.
    Cattle prices were buoyed in recent weeks by rising
wholesale beef prices and lower cattle weights - factors that
suggested strong demand. But beef prices typically trend lower
in the early summer months as retailer buying slows.
    Uncertainty surrounding top global beef processor JBS also
triggered profit-taking in cattle futures, the traders said.
    "This was a healthy market correction," a cattle trader in
Chicago said.
    Chicago Mercantile Exchange June live cattle        fell
1.900 cents to 130.200 cents per pound. Most-active CME August
live cattle        were down 2.600 cents to 123.600 cents per
pound, after touching a contract high of 127.650 cents.
    CME August feeder cattle        declined 2.7 percent to
finish at 155.375 cents per pound, reversing at midday amid
heavy selling.
    JBS SA            announced a sale of its meat plants in
Argentina, Paraguay and Uruguay to rival Minerva SA           
amid a scandal in which JBS admitted to paying politicians
    JBS has beef plants in Texas, Nebraska, Michigan and
Wisconsin. A U.S. cattle industry group, R-CALF, also released a
letter asking President Donald Trump to investigate JBS'
business in the United States.
    The U.S. Department of Agriculture after the close of
futures trading said choice-grade wholesale beef was up $2.10 to
$250.45 per cwt, its highest in more than a year. Wholesale pork
eased 93 cents to $90.25 per cwt, USDA said.                    
    Lean hogs futures gained in a rebound from losses on Monday.
Prices continued to trend sideways near last week's multimonth
highs, with strong pork demand met by abundant hog supplies.
    CME June hogs        were up 0.925 cent to 81.650 cents per
pound and most-active July hog futures        up 0.950 cent to
81.375 cents.

 (Editing by James Dalgleish)

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