October 13, 2017 / 8:28 PM / a year ago

LIVESTOCK-CME live cattle ends mostly weaker on consolidation

    * Feeder cattle finishes higher
    * Lean hogs firmer, Oct expires

    By Theopolis Waters
    CHICAGO, Oct 13 (Reuters) - Most Chicago Mercantile Exchange
live cattle contracts landed in modestly bearish territory on
Friday amid pre-weekend consolidation after investors digested
this week's cash prices, said traders.
    "The market is priced right with this week's cash. We'll
wait until next week to see if packers are short on supplies or
need cattle," said Vetterkind Cattle Brokerage President Troy 
    October         live cattle finished up 0.475 cent per pound
to 112.825 cents. December         closed 0.150 cent lower at
117.125 cents, and February         ended down 0.125 cent at
121.075 cents.
    Packers in the U.S. Plains this week paid roughly $111 per
cwt for slaughter-ready, or cash, cattle that a week earlier 
brought $108 to $109, said feedlot sources.
    Tight supplies in parts of the Plains were enough to force
some packers to bid up for animals, a trader said. But, at least
one major processor is thought to have enough inventory through
the rest of the month, he said.
    Still impressive, but slipping, beef packer margins and talk
that supermarkets are preparing to advertise beef in early
November offered underlying cash price support, analysts and
traders said.                   
    But some market participants are taking a wait-and-see
attitude regarding beef demand given increased cattle numbers
ahead and this week's U.S. beef export slippage.             
    Short-covering, technical buying and this week's sharply
higher cash feeder cattle prices pared some of Thursday's CME
feeder cattle losses.
    October         ended 0.500 cent per pound higher at 154.050
    Bargain hunting and fund buying lifted deferred CME lean
hogs, while October lagged prior to its expiration at noon CDT
(1700 GMT), said traders.
    October         settled down 0.300 cent per pound at 60.400,
and nearly inline with CME's hog index for Oct. 11 at 59.12
    Most actively traded December         finished up 0.575 cent
to 62.200 cents, and February         closed 0.625 cent higher
at 67.450 cents.
    Both contracts ended above their respective 10-day moving
average of 61.788 and 67.215 cents.
    Uneasiness about cash prices and pork demand heading into
the second half of October Pork Month, along with futures'
premiums to the exchange's index, capped market gains, traders
and analysts said.                 
    Nonetheless, expectations for fewer hogs beginning late this
year provided support, they said.

 (Reporting by Theopolis Waters; Editing by Richard Chang)
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