August 23, 2017 / 7:57 PM / in 3 months

LIVESTOCK-CME live cattle futures resume trek to 9-month low

    * Feeder cattle close weaker
    * Hogs repeat 4-month bottom

    By Theopolis Waters
    CHICAGO, Aug 23 (Reuters) - Chicago Mercantile Exchange live
cattle futures        on Wednesday hit a nine-month low for the
fourth time in the past five sessions, led by seasonally soft
wholesale beef demand and lower initial cash prices, said
traders.
    Fund liquidation contributed to declines after deferred
contracts slipped below key technical support levels, they said.
    August         ended 1.075 cents per pound lower at 105.650
cents. October         closed 1.550 cents lower at 106.175 cents
and below the 10-day moving average of 106.985 cents.
    Profitable margins are encouraging packers to process as
many cattle as possible.
    However, packers are paying less for supplies that have
grown seasonally, which has discouraged grocers from buying beef
at higher prices.
    "Muted beef demand and year-over-year production gains are
pushing prices lower," American Restaurant Association chief
analyst David Maloni wrote in his newsletter to clients.
    On Wednesday a small number of slaughter-ready, or cash,
cattle in Nebraska brought $117 per cwt, down from $109 to $110
there a week earlier.
    Remaining packer bids in the U.S. Plains stood at $106 to
$107 versus $112 asking prices from sellers, feedlot sources
said.
    For a second straight week no cattle changed hands at
Wednesday morning's Fed Cattle Exchange.
    Market participants await USDA's monthly Cattle-On-Feed
report on Friday at 2 p.m. CDT (1900 GMT).                   
    Technical selling and live cattle futures weakness weighed
on CME feeder cattle contracts.
    August feeders         closed down 0.450 cent per pound to
141.625 cents.
    
    HOGS EXTENDS FOUR-MONTH LOWS
    For a fourth straight session CME lean hogs drifted to a
four-month bottom as hefty supplies continued to drag down cash
and wholesale pork prices, said traders.
    Investors sold the October contract and simultaneously
bought deferred months in a trading strategy known as bear
spreading.
    October         ended down 0.325 cent per pound to 63.550
cents, and December         finished down 0.200 cent at 58.850
cents.

 (Reporting by Theopolis Waters; Editing by James Dalgleish)
  

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