CME cattle seen mixed amid supportive cash prices; hogs weak

Sept 4 (Reuters) - CME live cattle drew mixed opening calls
for Tuesday with possible support from last week's higher cash
cattle prices while pressured by lower wholesale beef values,
analysts and traders said.
* CME hogs are expected to open weak as continued ample
supplies pressured cash hog and wholesale pork prices.

LIVE CATTLE - Called up 0.300 to down 0.300 cents per lb.
* Last week, cash cattle in the southern Plains traded at
$123 per cwt, up $2 to $3 than the week before, said feedlot
sources. Fed cattle in Nebraska mostly traded from $121 to
$121.50, steady to $2 higher than last week, they said.
* USDA estimated the choice wholesale beef price, or cutout,
on Friday at $189.62 per cwt, down $1.21 from Thursday. Select
cuts were 57 cents lower at $179.46.
* Packers last week spent more for cattle in the cash market
after being short-bought of supplies before the Labor Day
holiday on Monday, a trader said.
* Grocers needed less meat going into the holiday, which
caused wholesale prices to fall, which was expected, he said.
* Higher cash prices and lower wholesale beef values took
their toll on packer operating margins.
* HedgersEdge.com estimated Friday's average beef packer
margin at a positive $13.45 per head, compared with a positive
$16.75 on Thursday and a positive $46.70 on Aug. 24.

FEEDER CATTLE - Seen 0.200 to 0.500 cents per lb lower.
* Futures are seen weighed by profit-taking and higher corn
prices, raising feed costs for cattle feeding operations.

LEAN HOGS - Called down 0.100 to 0.300 cents per lb.
* Burdensome hog supplies continued to drag down cash hog
and wholesale pork values, an analyst said.
* Quarterly profits for pork giant Smithfield Foods Inc
came in below analysts' expectations as increased
supplies and weak retail demand hurt its domestic fresh pork
business.