LIVESTOCK-Cattle futures gain on short-covering

* Short-covering buoys cattle futures
    * Feeders follow cattle higher
    * Hogs gain on strong cash markets

    By Sam Nelson
    CHICAGO, June 6 (Reuters) - Chicago Mercantile Exchange
(CME) live cattle futures closed higher on Thursday on technical
short-covering and despite wholesale beef markets that eased
again from recent record highs, traders and analysts said.
    "Boxed beef may be lower but there is still good movement.
Cash cattle haven't traded yet so it's just a seesaw affair in
the cattle market right now," said Jack Salzsieder a broker for
K&S Financials.
    The U.S. Department of Agriculture's (USDA) boxed beef
	
report showed choice wholesale beef carcasses at $203.08 per hundredweight, down $1.32 per hundredweight from Wednesday. Traders were waiting for direction from this week's U.S. Plains cash cattle market which had not traded as of the close of futures trading on Thursday. "Cash cattle keep trading at a premium to futures so that's acting as a magnet for futures but most support to cattle futures was from short-covering," said Art Liming, a market specialist for Citigroup. CME live cattle for June delivery were up 0.200 cent per lb at 120.450 cents per lb. August delivery cattle were up 0.750 at 120.025. There were no cash bids or asking prices reported by feedlot sources on Thursday and cash cattle last week moved at $124 to $125 per hundred weight. Some analysts were skeptical that weakness in the cash market would develop this week, which helped keep a firm undertone in the cattle futures market. The number of cattle up for sale is roughly steady with last week, which may support cash prices, an analyst said. Estimated margins for U.S. beef packing companies were a positive $39.70 per head, down from $43.55 on Wednesday and below $75.25 per head a week ago, according to Denver-based
livestock marketing advisory service HedgersEdge.com LLC. Feeder cattle futures turned firm on spillover support from the gains in cattle but gains were limited by an uptrend in Chicago Board of Trade corn futures. Corn is the major cattle feed ingredient and an increase if feeding costs often cut back on the demand for young feeder cattle to place on feed in the nation's huge feedlots. CME feeder cattle for August delivery were up 0.050 cent per lb at 144.650 cents per lb and were up 0.050 at 146.900 for September. Lean hog futures closed higher on persistent good demand for pork at the retail level and another upturn in cash hog markets. "Cash hogs are firm and there is more aggressive buying by packers," Liming said. Cash live hogs traded in the Iowa and southern Minnesota region on Thursday were steady to 50 cents per hundredweight higher and markets extending from Illinois into Ohio also were likewise steady to 50 cents higher. Cash hog dealers said the market was uneventful in Iowa and southern Minnesota but there was still some need for hogs or demand amid a tight supply. Packers were attempting to process more hogs than available
and paying up to get them in Illinois, cash dealers said. Estimated margins for U.S. pork packing companies were a negative $5.35 per head, compared with negative $3.25 on Wednesday and negative $1.25 per head a week ago, according to HedgersEdge.com. CME lean hogs for June delivery were up 0.650 cent per lb at 97.300 cents per lb and July hogs were up 1.250 cents per lb at 95.825 cents per lb. (Additional reporting by Alyce Hinton in Chicago; Editing by Marguerita Choy)

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