May 7, 2018 / 8:09 PM / in a year

LIVESTOCK-CME live cattle slide; funds roll June positions

    CHICAGO, May 7 (Reuters) - Chicago Mercantile Exchange live
cattle        on Monday lost ground for a second straight
session, hit by technical selling and the "roll" by funds out of
June into deferred contracts, traders said.
    Funds in CME's livestock markets that track the Standard &
Poor's Goldman Sachs Commodity Index           sold, or rolled,
June futures mainly into August on the first of five days for
the process.
    June         live cattle closed down 0.875 cent per pound 
at 105.175 cents, below the 10- and 40-day moving average
convergence level of 105.749. August         ended 0.975 cent
lower at 104.100 cents, below the 20-day moving average of
    Worries about increased supplies in the coming weeks kept
prospective deferred-month futures buyers on the defensive. But
declining cattle weights imply feedlots are rushing livestock to
market - suggesting fewer animals later.
    "Weights are coming down fast. Along with that, if I've got
cattle due to go to market in May and they're hedged in June,
the basis, or spread between futures and cash prices, is a
gift," said Agrivisor Services analyst Dale Durchholz.
    Rising beef packer profits and robust beef demand tempered
nearby futures losses and could bode well for this week's cash
cattle prices.                   
    Last week, packers paid $118 to $128 per cwt for
slaughter-ready, or cash, cattle in the U.S. Plains that a week
earlier brought $118 to $126.50.
    Market participants await the sale of 2,380 animals at
Wednesday's Fed Cattle Exchange. Livestock there last week on
average fetched $122.50 per cwt.
    Technical selling, live cattle future's selloff and steady
to lower cash feeder steer prices pressured CME feeder cattle
    May         closed 2.775 cents per pound lower at 137.625 
    Fund rolling undercut the June CME hog contract while
lifting back months, traders said.
    Future's price premium to the exchange's hog index for May 3
at 63.13 cents capped deferred-month market advances, they said.
    May         closed down 1.000 cent per pound at 66.075
cents. Most actively traded June         ended up 0.650 cent at 
74.175 cents, and July         closed up 0.325 cent at 75.900
    Retail spring grilling-related buying and preparation for
the U.S. Memorial Day holiday cook outs supported wholesale pork
prices, traders and analysts said.         
    Some packers will continue to bid up hogs for the rest of
this week's product, but one Midwest processor on Monday was
idled by mechanical issues, a regional hog merchant said.

 (Reporting by Theopolis Waters
Editing by Leslie Adler)
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