June 14, 2017 / 9:12 PM / 7 months ago

LIVESTOCK-CME live cattle tumble by 3-cent price limit

    * Feeder cattle fall sharply
    * Hog futures gain modestly

    By Theopolis Waters
    CHICAGO, June 14 (Reuters) - Chicago Mercantile Exchange
live cattle nearby contracts on Wednesday finished down their
3-cents-per-pound daily price limit, hit by fund liquidation and
lower preliminary cash prices, said traders.
    June         and August         closed limit down at 124.500
cents and 117.875 cents, respectively. Both contracts ended
below their respective 40-day moving averages of 124.545 and  
120.100 cents.
    CME live cattle's trading limit will expand to 4.500 cents
on Thursday following Wednesday's limit-down settlement.
    So far this week, a small number of market-ready, or cash,
cattle in the U.S. Plains moved at $130 to $134 per cwt, down as
much as $7 from a week ago in parts of the region, said feedlot
    Remaining cattle bids are at $128 per cwt with no response
from sellers. Last week, cash cattle in the Plains traded at
mostly $136 to $137.
    Computer problems delayed Fed Cattle Exchange price
reporting until next Wednesday.             
    Processors last week may have purchased enough cattle in
advance for this week's production, said KIS Futures vice
president Lane Broadbent.
    Traders and analysts said more than 40,000 animals for sale
last week, and wholesale beef prices close to topping out
seasonally, contributed to this week's bearish attitudes toward 
cash returns.             
    Sell stops and live cattle futures liquidation upended CME
feeder cattle contracts.
    August feeders         ended 3.825 cents per pound lower at
146.125 cents.

    Sharply higher cash prices and modest wholesale pork price
gains lifted nearby CME lean hogs, said traders.
    They said investors bought bullishly viewed hog futures and
simultaneously sold cattle contracts because of its bearish
market tone.
    June        , which will expired at noon CDT (1700 GMT),
closed up 0.225 cent per pound to 83.000 cents. Most actively
traded July         finished 0.300 cent higher at 82.575 cents.
    Dwindling seasonal supplies could get even tighter as hot
summer weather in the Midwest takes hold, which tends to slow
animal weight gains, an analyst said.             

 (Reporting by Theopolis Waters; Editing by James Dalgleish)
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