November 29, 2018 / 12:30 AM / 15 days ago

LIVESTOCK-Lean hog futures sag on technical selling, soft cash

    By Julie Ingwersen
    CHICAGO, Nov 28 (Reuters) - U.S. lean hog futures closed
mostly lower on Wednesday, with the benchmark February contract
       declining for a third straight session on technical
selling and weak cash values, traders said.
    Chicago Mercantile Exchange February lean hog futures
        settled down 0.550 cent at 64.500 cents per pound after
the contract dipped below its 50-day moving average for the
first time since Nov. 16.
    Front-month December hogs        edged up 0.075 cent to end
at 57.950 cents.    
    "The technicals are breaking down. The supplies are starting
to weigh on the market," said Don Roose, president of Iowa-based
U.S. Commodities.
    Concern about soft cash hog values has been overshadowing
support from expectations that African swine fever in China's
massive hog herd eventually could lead to increased demand for
U.S. pork, Roose and others said.
    Livestock traders were positioning ahead of expected U.S.
-China talks at the G20 summit later this week in Argentina.
U.S. President Donald Trump is due to meet there with Chinese
counterpart Xi Jinping for the first time since the world's two
largest economies imposed punitive tariffs on each other's
imports.
    "The question is what happens on demand, and we'll get a
better look at that after these meetings," Roose said.
    Hopes for a U.S.-China trade war ceasefire helped lift Wall
Street equities along with soy and grain futures.            
       Xi, ahead of the G20 meeting in Argentina, said China
will widen market access for foreign investors and step up
protection of intellectual property rights.             
    CME live cattle futures closed modestly lower Tuesday and
feeder cattle futures followed the weak trend.
    CME February live cattle futures         settled down 0.050
cent at 120.550 cents per pound and January feeder cattle
        ended down 0.725 cent at 147.700 cents.

 (Reporting by Julie Ingwersen
Editing by Leslie Adler)
  
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