August 31, 2017 / 10:29 PM / 3 months ago

LIVESTOCK-Cattle slide to 9-month low on technicals, weak cash markets

    By Michael Hirtzer
    CHICAGO, Aug 31 (Reuters) - Chicago Mercantile Exchange live
cattle futures         eased to the lowest levels since November
on Thursday, pressured by technical selling and weaker cash
cattle prices, traders said.
    The most-active CME October live cattle contract       
knocked out its lows from last week, triggering selling that
brought prices to fresh multimonth lows before they recouped a
portion of their losses by the end of the session.
    October cattle settled down 0.725 cent at 105.400 cents per
pound. The settlement was nearly at parity with cash cattle
trades in the southern U.S. Plains of $105 per cwt, which was
down from sales last week of $106 to $107. 
    The August cattle contract        expired at midday 1.025
cents lower at 104.525 cents. Cattle on a continuous chart
       declined 6.7 percent for the month, the fourth
consecutive monthly decline.
    "The market structure is not bullish ... the chart continues
to trend lower and needs to be respected," said Top Third Ag
Marketing broker Craig VanDyke, adding that cattle supplies were
ample and beef production expected to increase in the fourth
quarter.
    Feeder cattle futures         also eased, tracking declines
in live cattle. Rebounding corn futures        could also raise
costs for fattening cattle, potentially eating in to profit
margins and reducing demand for cattle feedlots.
    Most-active CME October feeders        finished 0.825 cent
lower at 143.300 cents per pound while August feeders       
expired down 0.l75 cent at 142.725 cents.
    Lean hog futures         were mostly higher, extending gains
from the previous session after hitting roughly nine-month lows
on Tuesday. Short covering continued to buoy prices despite
weakening wholesale pork and pork belly prices.
    Front-month October hog futures        finished 0.050 cent
higher at 61.400 cents per pound and December hogs        up
0.825 cent to 58.025 cents.
    

 (Reporting by Michael Hirtzer in Chicago; Editing by Matthew
Lewis)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below