November 24, 2017 / 8:38 PM / a year ago

LIVESTOCK-Profit-taking undercuts CME live cattle futures

    * Feeder cattle rise again
    * Hog market closes higher

    By Theopolis Waters
    CHICAGO, Nov 24 (Reuters) - Chicago Mercantile Exchange live
cattle        futures on Friday were weakened by profit-taking
during a shortened session following the U.S. Thanksgiving Day
    CME livestock markets closed early at 12:15 p.m. CST (1815
GMT) and will resume on Monday at 8:30 a.m. CST (1430 GMT).
    Technical selling, and potential cattle supply growth ahead,
further weighed on CME live cattle contracts.
    December         live cattle finished down 0.475 cent per
pound at 118.575 cents, and February         ended 0.900 cent
lower at 124.575 cents.
    "The market has been anticipating more cattle to come based
on recent U.S. government Cattle-On-Feed reports," said Oak
Investment Group President Joe Ocrant.                         
    Investors look forward to next week's prices for
slaughter-ready, or cash, cattle after packers this week in the
U.S. Plains paid roughly $118 to $120 per cwt. A week ago those
animals brought mostly $119.
    Processors caught short on supplies, and retailers featuring
beef as consumers suffer from "turkey fatigue" after
Thanksgiving, might support cash prices next week in parts of
the Plains, said traders and analysts.           
    Other cash prices might feel pressure from ample cattle
numbers now. And some processors may make do with what they have
before plants close over the Christmas holiday.
    On Friday, the U.S. Department of Agriculture's export sales
report for the week ended Nov. 16 showed U.S. beef exports at
9,300 tonnes, mostly to South Korea. It was unchanged from the 
week before but down 38 percent from the prior four-week
    Buy stops and softer corn prices lifted CME feeder cattle
       for a third straight session.
    January         feeder cattle closed up 0.575 cent per pound
at 153.300 cents.
    CME lean hogs garnered support from buy stops and technical
buying, said traders.
    Some investors bought December futures and simultaneously
sold deferred months in a trading strategy known as bull
    December         hogs ended 0.425 cent per pound higher at
63.250 cents. February         closed up 0.300 cent to 69.400
    Cash prices were mixed as post-Thanksgiving holiday packer
demand varied.
    Wholesale pork prices rose after grocers purchased product
to avoid supply disruptions after plants closed for the
Thanksgiving holiday.         
    Friday's USDA export sales report put U.S. pork exports at
16,300 tonnes, mostly to Mexico. That was up 24 percent from a
week earlier and up 1 percent from the previous four-week

 (Reporting by Theopolis Waters; Editing by James Dalgleish)
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