May 22, 2018 / 10:40 PM / in a month

LIVESTOCK-Hogs extend decline on technicals; cattle up slightly

    By Michael Hirtzer
    CHICAGO, May 22 (Reuters) - Chicago Mercantile Exchange lean
hog futures         fell for the third straight session to a
roughly three-week low on Tuesday, weighed down by technical
selling and weaker prices for hogs in U.S. cash markets, traders
said.
    Government data released after the close of trading that
showed increased supplies of U.S. pork in cold storage could
further weigh on hog futures but bargain hunters could also
resume buying after recent declines.
    "The hogs have gotten beat up pretty good. We might see some
follow-through selling ... but $1 or $2 more (lower) and we
would have a pretty good floor as far as value from an
investment standpoint," said FuturesOne broker Matthew Wiegand.
    CME June lean hogs        ended 0.875 cent lower at 73.125
cents per pound and most-active July hogs        were down 1.725
cents to 75.125 cents.
    Hogs in the top cash market of Iowa and southern Minnesota
were off $1.38 to $63.66 per cwt and wholesale pork up 4 cents
to $76.14 per cwt, according to the U.S. Department of
Agriculture.                  
    USDA in a monthly report said 641.4 million pounds of U.S.
pork were in cold storage on April 30, up from 611.0 million
pounds at the end of March and about on par with analyst
estimates for 642.6 million pounds.
    Beef in cold storage totaled 471.5 million pounds, above
464.0 million in March and analyst estimates for 465.9 million
pounds.             
    Most cattle futures         were narrowly higher on Tuesday
but stayed below the peaks notched during a surge in prices on
Monday. Some investors were waiting to see how cash cattle
trading would develop this week before making new bets in the
futures market.
    USDA was set to release a monthly Cattle on Feed report on
Friday, in which analysts polled by Reuters predicted a 9.1
percent drop in cattle placed in feedlots during April.
            
    CME June live cattle        were down 0.025 cent to 104.900
cents per pound and most-active August cattle        up 0.025
cent to 100.650 cents. CME August feeder cattle        climbed
0.225 cent to 140.725 cents.

 (Reporting by Michael Hirtzer in Chicago
Editing by Tom Brown)
  
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