December 1, 2017 / 11:59 PM / a year ago

LIVESTOCK-CME live cattle futures tumble on long liquidation

    By Julie Ingwersen
    CHICAGO, Dec 1 (Reuters) - U.S. cattle futures fell to a
one-month low on Friday on fund-driven long liquidation and
worries about declines on Wall Street, while hog futures firmed
in largely technical trade, traders and analysts said.
    Live cattle         fell despite higher wholesale beef
values. Choice-grade wholesale beef prices rose $1.35 to $205.99
per cwt.           
    February live cattle        ended down the daily 3-cent
limit at 121.975 cents per pound and December cattle        fell
2.675 cents at 117.225 cents. Daily limits will be expanded to
4.500 cents for Monday's trade, the CME Group said on its
    CME January feeder cattle        fell 3.850 cents to 150.325
cents per pound, with higher corn prices adding pressure. More
expensive feed can limit demand for feeder cattle from feedlots
that fatten the animals for slaughter.       
    Commodity funds hold a net long position in live cattle and
feeder cattle futures, leaving the markets vulnerable to bouts
of long liquidation. Data from the Commodity Futures Trading
Commission showed speculative investors trimming their net long
in each livestock contract in the week ended Nov. 28.
    Cattle longs may have taken a cue from Wall Street, where
major indexes fell Friday, whipsawed by developments in a probe
into Russia's alleged involvement in the U.S. election as well
as progress on a tax bill in Congress.  
    Equities fell after ABC News reported that former national
security adviser Michael Flynn was prepared to testify that
before taking office President Donald Trump had directed him to
make contact with Russians. But stocks recouped the bulk of
their initial losses after U.S. Senate Republicans said they had
enough support to pass a sweeping tax overhaul.             
    Hog futures         rallied after a two-day sell-off,
despite lower cash prices in the top market of Iowa and southern
    Most-active CME February hogs        settled up 0.95 cent at
70.725 cents per pound while December hogs        rose 1 cent to
65.275 cents.

 (Reporting by Julie Ingwersen and Michael Hirtzer; Editing by
Leslie Adler)
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