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LIVESTOCK-CME live cattle ends sharply higher, shrugs off USDA report
June 26, 2017 / 7:35 PM / 6 months ago

LIVESTOCK-CME live cattle ends sharply higher, shrugs off USDA report

    * Feeder cattle closes up 4.5-cent limit
    * Lean hog contracts finish firmer

    By Theopolis Waters
    CHICAGO, June 26 (Reuters) - Chicago Mercantile Exchange
live cattle futures closed sharply higher on Monday, with the
August contract up the 3-cent per pound daily price limit,
helped by buy stops and fund buying, said traders.
    They said Monday morning's wholesale beef price upswing and
back-month futures' discounts to last week's cash prices offset
initial selling tied to Friday's bearish U.S. Department of
Agriculture monthly Cattle-On-Feed report.             
    June        , which will expire on Friday, closed 2.275
cents per pound higher at 121.475 cents. Most actively traded 
August         finished limit up at 118.275 cents, and topped
its 10-day moving average of 116.960 cents.
    CME live cattle's trading limit on Tuesday will be expanded
to 4.500-cents following August's limit-down settlement on
    Market participants await this week's sale of market-ready,
or cash, cattle that a week ago brought $118 to $123 per cwt.
    Packers are buying cattle for the U.S. July Fourth
holiday-shortened workweek as beef demand tends to subside this
time of year, said traders and analysts.
    Wednesday's Fed Cattle Exchange sale of 2,554 animals could
set the tone for remaining animals in the Plains. Last week, a
small number of cattle at the exchange moved at $123 per cwt.
    Buy stops, technical buying and live cattle futures advances
drove nearby CME feeder cattle contracts up their 4.500-cent
price limit. The limit will be expanded to 6.750 cents on
    August feeders         ended limit up at 149.450 cents per

    CME lean hog futures' discount to the exchange's hog index
for June 22 at 90.17 cents attracted buyers, said traders.
    They said investors sold deferred months before Thursday's
USDA quarterly hog report and bought July - driving it to a new
high for the contract.
    July         ended up 1.725 cents per pound to 87.025 cents,
and marked a new high of 87.725 cents. August         closed up
0.025 cent to 78.675 cents.
    Packers need fewer hogs before plants shut down during the
holiday, which could reduce the amount of product available to
retailers, a trader said.                           

 (Reporting by Theopolis Waters; Editing by Cynthia Osterman)

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