(Corrects date in dateline)
* Profit taking pressures CME live cattle
* Most feeder futures fall as corn rallies
By Theopolis Waters
CHICAGO, Aug 15 (Reuters) - Chicago Mercantile Exchange hogs
Thursday slumped to a four-month low on profit taking
following lower cash hog and wholesale pork prices, traders and
analysts said.
The wide disparity between the new lead-month October
contract and the spot August trading month, which expired on
Wednesday at 102.425 cents, played a role in futures' sizable
drop on Thursday.
CME hog October settled at 87.300 cents per lb,
0.850 cent lower. December finished at 84.025 cents,
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U.S. Department of Agriculture data on Thursday afternoon
quoted the wholesale pork price, or cutout, at $102.71 per
hundredweight (cwt), which was down 43 cents from Wednesday.
Separate USDA data showed the average hog price at the
closely watched Iowa/Minnesota market on Thursday afternoon at
$97.05 per cwt, down 92 cents from Tuesday.
Grocers are waiting for pork prices to come down before
topping off inventories for the Sept. 2 U.S. Labor Day holiday,
the last grilling holiday of the summer, said traders.
The seasonal increase in hog numbers afforded packers all
the supplies they need for the rest of this week's slaughter
while pumping more pork into the retail sector.
From Monday to Thursday, packers processed 1.688 million
hogs, 68,000 more than last week and 9,000 more than a year ago
for the same period.
PROFIT TAKING CLIPS CATTLE
CME live cattle posted modest losses as traders took profits
as they waited for cattle in the cash market to change hands,
analysts and traders said.
August live cattle futures closed down 0.300 cent at
123.700 cents per lb and October settled at 128.100
cents, off 0.075 cent.
"I was expecting some type of correction in the market after
being up three straight days," Oak Investment Group president
Joe Ocrant said.
He said futures' recent upswing and solid wholesale beef
demand are supportive for cash cattle prices.
Cash cattle bids in the U.S. southern Plains were at $119
per hundredweight (cwt) versus $123 to $124 asking prices,
feedlot operators said.
Last week, cash cattle in Texas and Kansas fetched $121 per
cwt. Live-basis cattle in Nebraska sold at $123.50 a week ago.
The government on Thursday afternoon reported the wholesale
price of choice beef up 95 cents per cwt from Wednesday to
$193.30. Select cuts climbed $1.01 to $185.71.
CME August feeder cattle drew support from higher prices for
cattle in the closely watched Oklahoma City market.
Profit taking and modest live cattle futures losses weakened
remaining feeder cattle contracts.
August feeders closed at 154.100 cents, 0.500 cent
per lb higher. September closed down 0.375 cent to
157.075 cents and October ended 0.500 cent lower at 159.350
cents.
(Reporting by Theopolis Waters; Editing by Kenneth Barry)
CORRECTED-LIVESTOCK-Slumping cash, pork prices drop US hogs to 4-month low
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