June 13, 2018 / 8:47 PM / 4 months ago

LIVESTOCK-CME hog futures move up with cash prices

    CHICAGO, June 13 (Reuters) - Chicago Mercantile Exchange
hogs        rose for a second straight day on Wednesday as
slaughter-ready, or cash, hog prices escalate in the midst of a
seasonal supply squeeze, traders said.
    Sultry weather in parts of the U.S. Midwest caused livestock
to eat less feed, which slows their weight gain and delivery to
processors.
    The U.S. Department of Agriculture's weekly data on
Wednesday showed hogs in Iowa/Southern Minnesota, on average, 
at 278.7 pounds, down 2.2 pounds from a week earlier and nearly
a pound less than a year ago.          
    Dwindling hog numbers forced packers to consistently outbid
each other for supplies, which has eroded their profits.
        
    Meanwhile, wholesale pork demand could taper after retailers
and restaurants top off inventories for June 17 Father's Day
advertisements, said traders and analysts.
    Also, some consumers may turn to lighter fare as hot weather
curbs appetites for heavier meals, they said. 
    June         hogs, which will expire on Thursday, closed up
0.475 cent per pound at 81.000 cents. Most actively traded July
        ended 1.325 cents higher at 82.775 cents.
    
    CATTLE CLOSES LOWER
    CME live cattle contracts sagged amid technical selling and
investor caution ahead of market-ready, or cash, prices later
this week, said traders.
    Market participants exercised caution while waiting for a
forecasted cattle supply buildup, they said.
    "Because there are enough cattle ... the lack of demand in
the dog days of summer is actually what's going to hurt our
market," said CHS Hedging analyst Steve Wagner.
    June         live cattle closed 0.600 cent per pound lower
at 107.925 cents. August         ended down 0.400 cent at
103.900 cents, and below the 10-day moving average of 104.090
cents.
    Packers so far this week had bid $110 per cwt for cash
cattle in the U.S. Plains that are priced from $117 to $120.
Last week, cash cattle in the Plains fetched $114 to $115.
    Bullish traders look for packers to pay roughly the same as
last week for cattle given their still historically high
margins.        
    Market bears cited this week's bigger showlists, or numbers
of cattle for sale, and pending supply growth as cash price
headwinds.
    CME feeder cattle mimicked weaker live cattle futures.
    August         closed down 0.175 cent per pound at 145.625
cents.

 (Reporting by Theopolis Waters
Editing by James Dalgleish)
  
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