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LIVESTOCK-Hog futures ease on big U.S. supplies, spreading
September 18, 2017 / 8:50 PM / a month ago

LIVESTOCK-Hog futures ease on big U.S. supplies, spreading

    By Michael Hirtzer
    CHICAGO, Sept 18 (Reuters) - Chicago Mercantile Exchange
lean hog futures         were mostly lower on Monday, pressured
by bear-spreading and big U.S. supplies that continued to weigh
on cash markets, traders said.
    The front-month October hogs contract        notched the
biggest declines, easing 0.975 cent, or about 1.7 percent, to
settle at 60.000 cents per pound. December hog futures       
fell 0.425 cent to 58.050 cents.
    "There's just too much supply," said Rosenthal Collins Group
broker James Burns.
    Pork packers were slaughtering nearly record amounts of U.S.
hogs, but some hog producers and traders expected more
aggressive buying after two new packing plants opened earlier
this month in Iowa and Michigan, Burns said.
    "Demand is decent but one of the problems is (hog) producers
ramped up supply in anticipation for the new facilities and we
have had some delays in some of those openings," he said.
    Cash hogs traded $1.31 lower to $52.17 per cwt in the top
market of Iowa and southern Minnesota, the U.S. Department of
Agriculture said after the close of futures trading.         
    Wholesale pork was up 33 cents to $78.09 per cwt, led by
firmer prices for rib and belly cuts, USDA said.         
    Hog futures reversed from gains of more than 3 percent on
Friday, with the October contract on Monday hitting upside
resistance at its 10-day moving average before turning sharply
lower.
    
    CATTLE HIGHER
    Both live cattle         and feeder cattle futures        
were mostly higher, bolstered by light chart-based buying and
following modest gains late on Friday in Plains cash cattle
markets.
    CME October live cattle        settled 0.175 cent lower at
107.575 cents per pound while December live cattle futures
       gained 0.125 cent to 112.950 cents.
    CME October feeder cattle        settled up 1.300 cents to
151.950 cents per pound, after earlier hitting a nearly
two-month high of 152.450 cents.
    Plains cattle fetched $105 to $106 per cwt on Friday, in
deals that were flat to up $1 from the previous week. Relatively
light-volume trading suggested that beef packers likely will
need to buy more cattle soon, INTL FCStone said in its Daily
Livestock Report.

 (Reporting by Michael Hirtzer)
  

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