CME cattle retreat on 'pink slime' fallout worries
March 28 (Reuters) - CME live cattle futures fell early Wednesday, reversed Tuesday's steep rise, amid worries that the uproar about ammonia-treated ground beef known as "pink slime" would keep dragging down wholesale beef prices. * A Tyson Foods Inc executive said Tuesday that the controversy over what the industry calls "finely textured beef" has hurt demand for U.S. ground beef. [ID:nL2E8QR3EL * Also weighing on cattle futures was uncertainty about this week's cash cattle prices given extremely negative beef packer margins. * Hog futures traded lower with the decline in cash hog prices. LIVE CATTLE - At 8:45 a.m. CDT (1445 GMT), April down 0.600 cent per lb at 125.000 cents and June down 0.575 cent at 121.400 cents. * "I guess what we saw yesterday was a dead-cat bounce with the deal about "pink slime" later pulling down the boxers (wholesale price)," an analyst said. * USDA Tuesday afternoon estimated the average price for choice beef at wholesale at $185.44 per cwt, down $1.31. Select cuts dropped $1.18 to $185.38 with a total sales volume of 197 carloads. * Feedlots in Texas and Kansas priced their cattle at $128 per cwt. * Packers are expected cut bids for cattle based on Tuesday's margins that was at a negative $75.90 per head, compared with a negative $38.24 a week ago, according to HedgersEdge.com. FEEDER CATTLE - March down 0.125 cent at 153.700 cents per lb and April down 0.350 cent at 153.675 cents. * Futures traded weaker with lower live cattle contracts. LEAN HOGS - April down 0.225 cent per lb at 84.575 cents and June down 0.575 cents at 93.150 cents. * Packers trimmed slaughter rates and cash prices to bring their margins back in line. * The government's estimate for the average price of hogs at the benchmark Iowa/southern Minnesota market Tuesday evening was 73 cents per cwt lower at $81.31. * Pork packer margins for Tuesday was estimated at a negative $7.55 per head, compared with a negative $4.21 last week. (Reporting by Theopolis Waters)
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