January 25, 2018 / 9:05 PM / 3 months ago

LIVESTOCK-Cattle sinks after hitting highest since early November

    CHICAGO, Jan 25 (Reuters) - Live cattle futures        
dropped 2.2 percent after hitting their highest level in 2-1/2
months on Thursday, snapping a three-day winning streak as a
rebound in the U.S. dollar sparked a round of profit taking.
    "The pushback on the U.S. dollar maybe caught a few people
off-guard," said Rich Nelson, chief strategist with Allendale
Inc. 
    Front-month Chicago Mercantile Exchange February live cattle
       finished down 2.950 cents at 122.475 cents per pound. The
front-month contract        peaked at 126.025, its highest price
since Nov. 6. Most-active CME April live cattle        was off
2.55 cents at 122.600 cents.
    Live cattle futures had posted higher closes in eight of the
previous nine sessions, with open interest rising as funds and
other investors placed new long bets.
    A weakening dollar       , which hit its lowest level since
2014 on Wednesday, had underpinned the rally. The dollar began
the day weaker on Thursday but firmed after U.S. President
Donald Trump told CNBC he ultimately wants the dollar to be
strong, contradicting comments made by Treasury Secretary Steven
Mnuchin one day earlier.                          
    CME February lean hog futures        were down 0.45 cent at
72.475 cents per pound and most-active April hogs        were
1.875 cents lower at 73.825.
    CME March feeder cattle futures        settled 2.475 cents
lower at 143.925 cents per pound. The contract dropped below its
30-day, 40-day and 50-day moving averages.

 (Reporting by Mark Weinraub; Editing by Matthew Lewis)
  
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