August 2, 2018 / 10:00 PM / a year ago

LIVESTOCK-Lower cash, pork prices send CME hog futures lower

    CHICAGO, Aug 2 (Reuters) - Chicago Mercantile Exchange hogs
       closed lower for a third straight day on Thursday,
posting new lows for the contract, following downward-trending
prices for market-ready, or cash hogs and wholesale pork values,
traders said.
    Plentiful hog supplies and some plants shutting down
temporarily to perform routine maintenance, which is typical
this time of year, cut cash prices for more than a week, said
traders and analysts.
    They said retailers were not actively buying pork, given
abundant overall meat supplies and a seasonal slowdown in demand
until the early-September Labor Day holiday - the last official
grilling holiday of the summer.
    Uneasiness about trade relations between the United States
and China, the No. 2 U.S. pork importer in 2017, kept a lid on
deferred hog contracts, a trader said.
    "It (China) definitely weighed on the market. But you've
already priced in the worst case scenario with all of that,"
said Hehmeyer Trading + Investments director of commercial
agriculture Tom Cawthorne.
    August         hogs ended down 1.275 cents per pound at
58.975 cents, and hit an all-time low for the contract at 58.050
cents. October         closed 1.125 cents lower at 49.650 cents,
and made a new contract low of 50.475 cents.
    CME live cattle futures posed modest losses while waiting
for the bulk of cash cattle to change hands by late Friday, said
    Technical selling and burdensome supply worries further
weighed on deferred futures contracts, they said.
    "I think the whole thing (market) is very psychological.
Everybody keeps saying we've got this big wall of cattle coming,
so packers are not going to bid up for cattle unless they have
to," said JRS Consulting owner Jack Salzsieder.
    Packer bids for slaughter-ready, or cash, cattle in Texas
and Nebraska ranged from $109 to $110 per cwt versus $114 to
$115 asking prices, said feedlot sources.
    A few cattle at Wednesday's Fed Cattle Exchange, on average,
 brought $110 per cwt. Last week, cash cattle in the U.S. Plains
moved at mostly $112.
    August         live cattle closed down 0.025 cent per pound 
at 108.600 cents. October         ended 0.325 cent lower at
109.950 cents.
    CME feeder cattle tracked softer live cattle futures.  
August         closed 0.625 cent per pound at 151.200 cents.

 (Reporting by Theopolis Waters
Editing by Tom Brown)
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