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LIVESTOCK-Lower cash prices drop CME hogs to one-month low
* Live cattle finishes lower
* Feeder cattle fall sharply
By Theopolis Waters
CHICAGO, Nov 14 (Reuters) - Chicago Mercantile Exchange lean
hogs on Tuesday slid to their lowest level in a month
after downward-trending cash prices triggered sell orders,
Fund selling developed after some contracts drifted below
technical support areas.
December hogs ended 2.325 cents per pound lower at
59.975 cents, and below the 100-day moving average of 61.647
cents. February closed 2.800 cents lower at 67.500
cents, under the 40-day moving average of 67.990 cents.
Abundant supplies sank prices for slaughter-ready, or cash,
hogs for a third straight session.
Some farmers moved pigs to packers after harvesting corn and
soybeans, said analysts and traders. Others are sending hogs to
market ahead of schedule to avoid lower prices before plants
close over the Thanksgiving Day holiday, they said.
Meanwhile, nutrient-packed newly harvested corn and cool
fall weather allow hogs to grow quicker, making them more
available to packers while pumping more pork into the retail
"I see this market moving higher, but you have to get
through the holiday. These hogs are going to get bigger, not
smaller," said CHS Hedging analyst Steve Wagner.
CATTLE MARKETS SLIDE
Sell stops and initial cash price weakness pressed CME live
cattle futures to a two-week low, said traders.
Some contracts slipped beneath technical support levels,
which sparked fund sales.
December live cattle finished 1.075 cents per pound
lower at 119.500 cents. February ended down 1.250 cents
to 125.150 cents, and below the 40-day moving average of 126.456
On Tuesday a small number of cash cattle in Nebraska brought
$119 per cwt, said feedlot sources. Cash prices in the U.S.
Plains last week ranged from $122 to $125.
Investors look to Wednesday's Fed Cattle Exchange sale of
less than 1,000 animals as a barometer for remaining cash prices
in the Plains later this week.
Fewer cattle are for sale this week, but that may not be
enough to offset tepid wholesale beef demand and packer profits
that are high but waning.
Processors will need fewer cattle while preparing to shut
down plants during the upcoming holiday.
"Packers can sit back and grind the cash market down. He has
no incentive to pay up for cattle," said Wagner.
CME feeder cattle followed live cattle futures lower,
with added pressure from deep cuts in cash feeder cattle prices
due to increased supplies.
November feeder cattle closed 1.075 cents per pound
lower at 157.625 cents.
(Reporting by Theopolis Waters; Editing by Meredith Mazzilli)
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