August 30, 2017 / 2:31 AM / a year ago

LIVESTOCK-CME hog futures extend losses to 8-1/2-month low

    * Live cattle futures closes lower
    * Feeder cattle ends down sharply

    By Theopolis Waters
    CHICAGO, Aug 29 (Reuters) - Chicago Mercantile Exchange lean
hog futures        on Tuesday fell for a third straight session
on their way to an 8-1/2-month bottom, pressured by seasonally
slumping cash prices and lower wholesale pork values the
previous day, traders said.
    October         ended 1.400 cents per pound lower at 60.225
cents, and December         finished down 1.425 cents, at 56.150
    Packers appear less inclined to raise bids for
slaughter-ready, or cash, hogs due to a seasonal bump in
supplies and a plant shutdown during the approaching U.S. Labor
Day holiday, analysts and traders said.                   
    Wholesale pork prices fell on Tuesday after pork belly costs
shrank as the summer bacon-lettuce-tomato sandwich season comes
to an end after Labor Day, they added.         
    Futures are technically over sold, which may soon stir
bargain buying and short-covering ahead of the last trading
session for the month of August on Thursday, one trader said. 
    Some investors will also square positions while preparing
for the three-day holiday weekend, he added.
    CME live cattle futures closed lower on profit-taking after
Monday's rally ignited by last Friday's bullish USDA monthly
Cattle-On-Feed report.
    Market losses triggered fund liquidation after October
futures slipped below the 10-day moving average of 106.843
    August         live cattle, which will expire on Thursday,
ended down 0.950 cent per pound, at 105.250 cents. Most actively
traded October         finished 2.275 cents lower, at 106.100
    Market participants await this week's sale of market-ready,
or cash, cattle against the backdrop of the holiday-shortened
work week, Tuesday's improved wholesale beef values and
extremely profitable packer margins.                  
    Packers have not bid for cattle in Texas and Kansas that
were priced at $108 to $110 per cwt. Last week, cattle in the
U.S. Plains brought $106 to $107.
    Wednesday's Fed Cattle Exchange sale of 1,777 animals might
set the tone for remaining prices for animals in the U.S. Plains
this week.
    Investors are monitoring developments as Tropical Storm
Harvey continues to pound parts of southern Texas with heavy
rain, forcing animals to higher ground.             
    Technical selling and live cattle futures losses sank most
of the exchange's feeder cattle contracts.
    August feeders        , which will expire Thursday, closed
up 0.175 cent per pound at 142.600 cents. Most actively traded
September         closed 2.850 cents lower, at 143.025 cents,
and October <1FCV7 finished 2.875 cents lower at 143.525 cents.

 (Reporting by Theopolis Waters; Editing by Clarence Fernandez)
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