May 3, 2018 / 7:25 PM / 3 months ago

LIVESTOCK-Higher cash prices rally CME live cattle futures

    CHICAGO, May 3 (Reuters) - Chicago Mercantile Exchange live
cattle        closed higher on Thursday led by
better-than-expected cash prices that halted the  market's
three-session losing skid, said traders.
    Fund buying and solid wholesale beef demand contributed to
futures advances, they said.
    Still, cattle trading months slipped from highs amid
lingering worries about a supply buildup in the coming weeks. 
     June         live cattle closed 1.675 cents per pound
higher at 106.525. August         ended 1.550 cents higher at
105.525 cents.
     Both contracts settled above their respective 40-day moving
average of 106.151 and 105.237 cents.
     On Thursday packers in the U.S. Plains paid $125 to $126
per cwt for slaughter-ready, or cash, cattle told sold from $118
to $126.50 last week.
     Feedlots pushed back against less money for their cattle
given impressive packer profits and seasonally strong wholesale
beef demand, said traders and analysts.                  
     "Packers will buy cattle and sell meat the right way and
continue to make money," said Vetterkind Cattle Brokerage
President Troy Vetterkind.
     Some investors remained concerned about larger cattle
supplies ahead.
     But others said lower weekly cattle weights suggest
feedlots may have sent livestock to market sooner than they had
planned, which could result in fewer animals later.
     CME feeder cattle closed up sharply on technical buying and
live cattle future's rebound.
     May         closed 2.175 cents per pound higher at 140.800 
cents.
    
    HOGS CLOSE FLAT-MIXED
    Firm cash prices expectations underpinned CME's May hog
contract while future's premiums to the exchange's hog index for
May 1 at 62.66 cents weighed on other months, they said.
    May         closed up 0.175 cent per pound at 67.075 cents.
Most actively traded June         ended unchanged at 73.500
cents, and July         closed down 0.225 cent at 75.675.
    Packers may compete for hogs to make good on retail meat
orders for spring grilling and upcoming Memorial Day holiday
meat advertisements, a trader said.
    Wednesday morning's wholesale pork values were pressured by 
a downward adjustment in pork belly prices following their sharp
spike on Tuesday, he said.         
 

 (Reporting by Theopolis Waters
Editing by Chizu Nomiyama)
  
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