* U.S. budget impasse weighs on livestock markets
    * CME live cattle down on profit taking, premiums
    * Feeders mixed; weak live cattle vs lower-priced corn

    By Theopolis Waters
    CHICAGO, Sept 30 (Reuters) - Chicago Mercantile Exchange hog
futures finished lower on Monday, led by last Friday's bearish
U.S. government quarterly hogs report, traders and analysts
said.
    Friday's U.S. Department of Agriculture report showed the
U.S. hog herd unexpectedly held steady from the June-August
quarter versus a year earlier despite the spread of the Porcine
Epidemic Diarrhea virus (PEDv), which is fatal to baby pigs.
	

		

			
ADVERTISEMENT
			
				
	

	

			
	
	
 
    Lower cash hog prices and profit taking on the last trading
day of the quarter helped send CME hogs to morning bottoms.
    Packers have near-term supply needs met after cutting
slaughter rates to expand their margins and counter a brief
supply shortage.
    Monday afternoon cash hog prices in the most-watched
Iowa/Minnesota market were $2.91 per hundredweight (cwt) lower
than on Friday at $89.80 per cwt, according to the USDA.      
    Jitters about a possible U.S. government shutdown over the
budget battle in Washington D.C. sidelined potential futures
buyers, traders said.
    USDA daily livestock prices and reports will not be
available if the agency is forced to furlough some of its
employees.
    Although USDA's data would be missed, some traders will
likely count on their contacts in the industry for market
information, said independent hog futures trader James Burns.
    Hog market losses dropped December futures below their
20-day moving average of 87.18 cents. Those declines stirred
fund selling, and later speculative bargain hunting.
    October hogs finished at 91.975 cents per lb, 0.950
cent lower. December closed 1.500 cents lower at 86.625
cents.
    
    CATTLE SLIP ON PROFIT TAKING     
    CME live cattle futures posted modest loses on
end-of-quarter profit taking that broke the market's eight-day
	

		

			
ADVERTISEMENT
			
				
	

	

			
	
	
win streak, traders and analysts said.
    The belief that futures were too pricy compared with last
week's cash cattle sales, and spillover pressure from Wall
Street, kept a lid on live cattle contracts, traders said.
    October closed 0.400 cent per lb lower at 127.850
cents. December finished at 131.975 cents, down 0.100
cent.
    Last week, cash cattle in the U.S. Plains moved at $126 per
cwt, which was $2 higher than the week before, feedlot sources
said. 
    Fewer cattle for sale forced packers to hike bids for
supplies, to the detriment of their margins.
    Estimated margins for U.S. beef packers on Monday were a
negative $17.85 per head, compared with a negative $7.85 on
Friday and a negative $1.00 a week ago, according to
HedgersEdge.com.
    Tight cattle supplies reduced the flow of fresh beef to
retailers, which stabilized the cutout.
    USDA data on Monday afternoon showed the wholesale choice
beef price, or cutout, at $193.25 per cwt, up 62 cents from
Friday. Select cuts rose $1.46 to $177.61.  
    Weak feeder cattle futures pressured the CME October feeder
cattle contract.
    CME October feeder cattle ended down 0.025 cent per
lb to 164.100 cents.
    Lower-priced corn supported other feeder cattle contracts.
	

		

			
ADVERTISEMENT
			
				
	

	

			
	
	
Cheaper corn can reduce input costs for feedlot operators.
    Corn prices at the Chicago Board of Traded slid in response
to a larger-than-expected number for corn seen in USDA's Monday
morning quarterly stocks report. 
    November feeder cattle settled at 165.200 cents,
0.275 cent higher, and January closed up 0.150 cent at 
164.000 cents.

 (Editing by Matthew Lewis)