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LIVESTOCK-Plentiful supplies drag CME hogs to 8-month low
August 29, 2017 / 12:53 AM / 23 days ago

LIVESTOCK-Plentiful supplies drag CME hogs to 8-month low

    * Live cattle futures end higher
    * Feeder cattle closes up sharply

    By Theopolis Waters
    CHICAGO, Aug 28 (Reuters) - Chicago Mercantile Exchange lean
hog futures on Monday were weakened by falling prices for
slaughter-ready, or cash, hogs along with softer wholesale pork
values as supplies build seasonally, said traders.
    They said packers also have more livestock at their disposal
as packing plants prepare to shut down for the upcoming U.S.
Labor Day holiday.
    October         ended 1.450 cents per pound lower at 61.625
cents, and December         finished down 1.375 cents to 57.575
cents.
    Investors sold CME lean hogs and simultaneously bought the
exchange's live cattle futures that rallied on short-covering
following last Friday's bullish U.S. Department of Agriculture
monthly Cattle-On-Feed report.             
    CME live cattle drew more support from technical buying and
the outlook for possibly steady cash prices this week - helped
by improved meat purchases for Labor Day holiday grilling
demand.
    Last week packers paid $106 to $107 per cwt for cash cattle
that a week earlier brought $109 to $110.
    August         live cattle, which will expire on Thursday,
ended up 0.250 cent per pound to 106.200 cents. Most actively
traded October         finished up 1.450 cents at 108.375 cents,
and above the 200-day moving average of 107.756 cents.
    Feeder cattle futures at the CME closed sharply higher,
ignited by fund buying, live cattle futures gains and as much as
$8 per cwt higher cash feeder cattle prices.
    August feeders        , which will also expire Thursday,
closed up 1.050 cents per pound to 142.425 cents. Most actively
traded September         closed 2.950 cents higher at 145.875
cents.

 (Reporting by Theopolis Waters; Editing by Cynthia Osterman)
  

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