* CME feeder finish down sharply
* Hog futures close narrowly mixed
By Meredith Davis
CHICAGO, Nov 19 (Reuters) - Chicago Mercantile Exchange live
cattle futures ended lower on Tuesday, pressured by technical
selling and weaker wholesale beef prices, analysts and traders
As the Thanksgiving holiday season approaches beef demand
typically diminishes in favor of turkey and ham. Analysts said
less demand may cause a backlog of beef products, which could
drive wholesale prices even lower.
The U.S. Department of Agriculture Tuesday morning reported
the choice beef wholesale price at $199.88 per cwt, down 68
cents from Monday. Select cuts slid 47 cents to $189.24.
"There is the issue of demand on the beef side of the
equation. A lot of skeptics say that you can't move beef at
these levels," said Dan Norcini, an independent livestock
Investors are uncertain about this week's cash cattle price
direction following live cattle futures' recent selloff and as
packer margins slipped deeper into the red.
There were no cash cattle bids or offers reported early on
Tuesday, according to feedlot sources. Cash-basis cattle last
week moved at $132 per cwt.
The USDA suspended its semi-annual U.S. cattle inventory
report for a second year on Tuesday due to budget cuts.
Live cattle December finished down 0.950 cent per lb
at 130.950 cents, and February closed at 131.675 cents,
or 1.525 cents lower.
CME feeder cattle fell, led by fund liquidation and lower
live cattle futures.
November feeders, which will expire on Nov. 22,
closed down 0.475 cent at 164.375 cents per lb. January
ended at 162.400 cents, 1.900 cents lower.
HOGS END MIXED
CME hogs ended narrowly mixed, pressured by lower wholesale
pork values while the rebound in cash hog prices offered
support, traders and analysts said.
Some packers raised cash bids to ensure they have supplies
for the rest of this week's production.
Tuesday morning's cash hog prices in the closely watched
Iowa/Minnesota market jumped $3.30 per cwt to $81.51, the USDA
Increased hog numbers at heavier weights dragged on
wholesale pork prices, Norcini said.
The government's Tuesday morning wholesale pork price fell
$1.25 from Monday to $91.43 per cwt.
Packers on Monday and Tuesday processed 876,000 hogs, 46,000
more than a week ago and up 8,000 from a year ago for the same
period, based on USDA estimates.
December hogs settled down 0.175 cent at 85.425
cents per lb, while February closed unchanged at 89.900
cents. April finished up 0.450 cent to 92.750 cents.
(Editing by Meredith Mazzilli)