CME live cattle, hogs seen steady-weak on cash, Russia caution

Mon Dec 10, 2012 9:50am EST

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Dec 10 (Reuters) - CME live cattle and hog futures are
expected to open steady to weak on Monday, weighed by lower
prices for cattle and hogs in the cash markets late on Friday.
    * Traders also cited livestock market caution as the United
States and Russia settle a dispute over the use of the feed
additive ractopamine in the U.S. production of pork and beef.
 
    * Cattle and hog futures have other bearish fundamentals to
cope with, and the Russian situation might give some people
another reason to sell, a trader said. 
                     
    LIVE CATTLE - Seen steady to down 0.500 cent per lb.
    * Cash cattle in Kansas and Nebraska on Friday moved at $124
per cwt, down $1 from the week before. Feedlots in Texas also
sold cattle at $124, compared with $126 to $128 a week ago.
    * Packers continued to cut slaughter rates and cash bids to
improve their poor and stabilize fallen wholesale beef prices.
            
    FEEDER CATTLE - Called steady to up 0.300 cent per lb.
    * Futures may draw support from lower corn prices, reducing
feed input costs.

    LEAN HOGS - Seen steady to 0.400 cent per lb lower.
    * Packers lowered bids for cash hogs to recoup lost margins
and as wholesale pork prices weakened.
    * Hog supplies have outpaced demand for animals, an analyst
said. The slowdown in retail demand for pork reflects ham
business winding down for the winter holidays, he said.
    * Inclement winter weather in Minnesota over the weekend may
briefly impede the shipment of hogs to packing plants, the
analyst said.

 (Reporting by Theopolis Waters in Chicago)
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