July 11, 2017 / 12:22 AM / 8 months ago

LIVESTOCK-Cash price unease pressures CME live cattle futures

    * Feeder cattle contracts end lower
    * Lean hog contracts settle weaker

    By Theopolis Waters
    CHICAGO, July 10 (Reuters) - Chicago Mercantile Exchange
live cattle futures closed lower on Monday, weakened by sell
stops and uncertainty regarding cash prices later this week,
traders said.
    Funds that track the Standard & Poor's Goldman Sachs
Commodity Index           at times sold, or "rolled", August
futures and simultaneously bought October on the first of five
days of the Goldman Roll process.
    August         ended 0.950 cent lower at 113.825 cents, and 
October         finished down 0.400 cent to 113.425 cents.
    Last week slaughter-ready, or cash, cattle in the U.S.
Plains brought mostly $118 to $119 per cwt.
    Investors await the sale of more than 2,600 animals at
Wednesday's Fed Cattle Exchange. Animals there last week, on
average, fetched $117.75 per cwt.
    Bullish investors believe better-than-expected cash prices 
late last week and impressive packer profits bode well for cash
    Market bears contend that processors are less likely to pay
more for supplies in the midst of seasonally hot weather that
tends to curtail grilling activities.
    Additionally, some ranchers and feedlots are moving cattle
to market earlier than they had planned to prevent potential
stress and animal death loss from high heat and humidity in
parts of the Plains.
    Strong corn prices and weaker live cattle futures weighed on
CME feeder cattle contracts.
    August feeders         ended 0.350 cent per pound lower at
144.675 cents.
    CME lean hogs drew pressure from sell stops and the roll by
funds out of the August contract into deferred months, said
    July        , which will expire on July 17, ended down 0.250
cent per pound to 91.475 cents. Most actively-traded August
        finished 1.225 cents lower at 82.000 cents.
    August futures remain at a bullish discount to cash prices,
but investors are waiting for the July contract to expire before
making their move, a trader said. 
    Packers raised bids for cash hogs whose numbers have
declined seasonally as sultry weather slows down animal weight
gains, he said.             

 (Reporting by Theopolis Waters; Editing by Andrew Hay)
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