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LIVESTOCK-CME live cattle dips to 9-month low for 3rd straight session
August 21, 2017 / 8:36 PM / a month ago

LIVESTOCK-CME live cattle dips to 9-month low for 3rd straight session

    * Feeder cattle futures end lower
    * Lean hogs drift to 4-month bottom
    * USDA cold storage report on Tuesday

    By Theopolis Waters
    CHICAGO, Aug 21 (Reuters) - Chicago Mercantile Exchange live
cattle futures        eased to their lowest level in nine months
on Monday as the seasonal supply build-up pressured wholesale
beef prices for a third consecutive session, traders said.
    They said bullish traders worried that plentiful cattle
numbers might again result in lower prices for slaughter-ready,
or cash, cattle later this week.
    Bargain buyers limited market losses while being drawn to
futures that remained bullishly undervalued, or discounted, to
last week's cash prices.
    August         ended down 0.375 cent per pound at 106.000
cents, and October         closed down 0.050 cent to 105.850
cents.
    Grocers are buying beef at lower prices knowing more
heavyweight cattle are now being processed, which tends to add
more tonnage to the retail sector, a trader said.
                    
    "Packers are in a tough spot because they have to clear as
much beef from their coolers as possible to make way for fresh
meat," he said.
    Last week cash cattle in the U.S. Plains brought $109 to
$110 per cwt versus $114 to $116 a week earlier.
    Market participants await Wednesday's Fed Cattle Exchange
(FCE) sale of 1,067 animals. No cattle changed hands last week
due to sufficient supplies and packer inventories.
     On Tuesday the U.S. Department of Agriculture will issue
the monthly cold storage report at 2 p.m. CDT (1900 GMT) that
will include total July beef and pork inventories.
     Two analysts surveyed by Reuters, on average, projected
last month's total beef stocks at 416.1 million pounds and 561.4
million for pork.
    Sell stops and weaker live cattle futures weighed on CME
feeder cattle contracts.
    August feeders         closed 0.700 cent per pound lower at 
139.800 cents.
    
    HOGS REPEAT 4-MONTH LOW
    Expectations for lower cash and wholesale pork prices, as
supplies grow seasonally, sank CME lean hogs        to a
four-month low for a second straight session, said traders.
    October         ended 1.450 cents per pound lower at 64.675
cents, and December         finished down 1.475 cents at 59.850
cents.
    Besides already abundant supplies, packers will not need as
many hogs as the Sept. 4 U.S. Labor Day holiday approaches, a
trader said.
    He said pork belly prices, part of overall wholesale pork
values, have peaked seasonally ahead of Labor Day - the
unofficial end of the summer bacon-lettuce-tomato sandwich
season.            

 (Reporting by Theopolis Waters; Editing by Tom Brown)
  

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