LIVESTOCK-CME live cattle spiral downward as supply worries persist

* Feeder cattle finishes lower * Lean hogs close mostly weaker By Theopolis Waters CHICAGO, Aug 29 (Reuters) - Most Chicago Mercantile Exchange live cattle contracts drifted lower on Monday on ample supplies that pressured wholesale beef values and could again hurt cash prices by Friday, traders said. Thinly traded August futures, which will expire on Wednesday, were supported by their discount to last week's prices for market-ready, or cash, cattle. August live cattle closed up 0.400 cents per pound at 110.750 cents.

UPDATE 1-Trade dispute, policy divisions hang over Trudeau trip to China

(Adds poll showing most Canadians oppose Chinese state investment)

By David Ljunggren

OTTAWA, Aug 29 (Reuters) - Canadian Prime Minister Justin Trudeau will visit Beijing this week seeking deeper ties with China but a trade dispute, government divisions over China policy and the case of a detained citizen could limit his gains.

China welcomed last year's election victory by Trudeau's Liberals, recalling fondly that his father Pierre Trudeau was prime minister when Canada formally established relations with Beijing in 1970.

Egypt's parliament chief refers wheat corruption report to prosecutor general

CAIRO, Aug 29 (Reuters) - A parliamentary fact-finding commission's report on corruption in the country's wheat industry was referred to the prosecutor general and an anti-corruption watchdog agency by the speaker of the Egyptian House of Representatives on Monday.

The report, which was also presented to members of Parliament on Monday and reviewed by Reuters in advance, found that the government played a key role in "wasting public funds" in its costly food subsidy programme.

UPDATE 1-Brazil corn export drop raises fertilizer delivery costs -CEO

(Adds details on corn crop losses)

SAO PAULO, Aug 29 (Reuters) - A sharp drop in Brazil's corn output in 2015/16 that reduced the flow of the grain from farmlands to ports has pushed up freight costs on the return trip for fertilizer, the chief executive officer of Fertilizantes Heringer said on Monday.

The reduced flow of trucks carrying corn to Brazil's southern ports has pushed up the cost of getting fertilizer to farms in the interior of Brazil, said Dalton Carlos Heringer, CEO of the country's third-largest distributor of the crop input.

Brazil corn export drop raises fertilizer delivery costs -Heringer

SAO PAULO, Aug 29 (Reuters) - A sharp drop in Brazil's corn output in 2015/16 that reduced the flow of the grain from farmlands to the port has pushed up freight costs on the return trip for fertilizer, the Chief executive officer of Fertilizantes Heringer said on Monday.

Germany/Futtermittel - Feeds prices - Aug 29

German Grain Cash Prices Aug 29 Lowest known bids in EUR/t, delivered. At local time 11:30 GMT. Barley, min 62-63 kg/hl Hamburg,Eur/t,Delivered bid offers change Delivered Hamburg Aug 16 140,00 147,00 -2.00 Delivered Hamburg Sep 16 141,00 147,00 -1.00 Option Delivered Hamburg Oct 16 141,00 147,00 -1.00 Ex Store Saxony Thüringen Aug 16 110,00 117,00 -2.00 Ex Store Saxony Thüringen Sep 16 111,00 117,00 -1.00

South Africa's drought recovery could be stalled by uncertain rain prospects

By Tanisha Heiberg

PRETORIA, Aug 29 (Reuters) - South Africa's recovery from its worst drought in over century could be stalled as anticipated rain relief from a La Nina weather system remains uncertain, the South African Weather Service said on Monday.

An earlier prediction of a moderate La Nina, which is associated with higher rainfall, for the spring/summer season between September and February, had eased farmers' drought fears. But the South African Weather Service said it was uncertain how much rain there would be.

Trade dispute, policy divisions hang over Trudeau trip to China

By David Ljunggren

OTTAWA, Aug 29 (Reuters) - Canadian Prime Minister Justin Trudeau visits Beijing this week seeking deeper ties with China but a dispute over canola exports, government divisions over China policy and the case of a detained citizen look set to limit his gains.

China welcomed last year's election victory by Trudeau's Liberals, recalling with fondness that his father Pierre Trudeau was prime minister when Canada formally established relations with Beijing in 1970.

Algeria's cereal harvest down to 3.3 mln tonnes

ALGIERS, Aug 29 (Reuters) - Algeria's cereal crop dropped this year to 3.3 million tonnes from 4 million tonnes in 2015 because of drought, Agriculture Minister Abdesselam Chelghoum said on Monday.

"The minister attributed the drop in cereal production to several factors, mainly drought," the North African country's state news agency APS reported.

CME live cattle futures trade weaker; hogs move upward

CHICAGO, Aug 29 (Reuters) - CME Mercantile Exchange live cattle futures began the week in negative territory on residual selling following 10 consecutive days of market losses, said traders.

* At 9:06 a.m. CDT (1406 GMT) August was down 0.200 cent per pound to 110.150 cents. Most actively-traded October was 0.575 cent lower at 105.775 cents.

* Investors are anticipating possibly softer prices for market-ready, or cash, cattle later this week as packing plants prepare to shut down on Monday's Labor Day holiday, traders and analysts said.

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