November 27, 2018 / 12:28 AM / 19 days ago

LIVESTOCK-Lean hog futures decline as cash values soften

    By Julie Ingwersen
    CHICAGO, Nov 26 (Reuters) - U.S. lean hog futures        
fell on Monday on softer cash values and reduced demand for hogs
from packers who were cutting kills, traders said.
    Live cattle futures were modestly lower while feeder cattle
ended mixed, with front-month January        declining and back
months firming.
    Chicago Mercantile Exchange lean hog futures fell despite
strong packer margins. Some analysts said futures were
correcting after the spot December contract        closed above
59 cents per pound on Friday, topping the CME lean hog index
       near 58.
    "You had a premium to cash. It's hard to maintain the
December premium if the index is not going up," said Alan
Brugler of Brugler Marketing. 
    The daily U.S. hog slaughter for Monday fell to 452,000
head, the U.S. Department of Agriculture said, the smallest
since Nov. 12. The government revised Friday's total downward as
well.           
    The market shrugged off the idea that a winter storm over
the weekend in the Plains and Midwest might slow the movement of
hogs to packing plants.             
    "It's rough in the Midwest, but by midweek I think
everything will open up and everything that needs to move, will
move," one trader said.
    CME February lean hog futures         settled down 2.275
cents at 65.550 cents per pound, retreating from a contract high
set last week.   
    CME February live cattle futures         settled down 0.275
cent at 120.650 cents per pound, a three-week high. January
feeder cattle         ended down 0.225 cent at 149.150 cents.
    Wall Street stock indexes               were higher, adding
some support to cattle futures on the bet that consumers spend
more on pricier cuts of meat when financial markets strengthen.

 (Reporting by Julie Ingwersen
Editing by Sonya Hepinstall)
  
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