Plentiful Supplies Drag CME Hogs to 8-month Low, Cattle Finish on High

Chicago Mercantile Exchange lean hog futures on Monday were weakened by falling prices for slaughter-ready, or cash, hogs along with softer wholesale pork values as supplies build seasonally, said traders.They said packers also have more livestock at their disposal as packing plants prepare to shut down for the upcoming U.S. Labor Day holiday. October ended 1.450 cents per pound lower at 61.625 cents, and December finished down 1.375 cents to 57.575 cents. Investors sold CME lean hogs and simultaneously bought the exchange's live cattle futures that rallied on short-covering following last Friday's bullish U.S. Department of Agriculture monthly Cattle-On-Feed report. CME live cattle drew more support from technical buying and the outlook for possibly steady cash prices this week - helped by improved meat purchases for Labor Day holiday grilling demand. Last week packers paid $106 to $107 per cwt for cash cattle that a week earlier brought $109 to $110. August live cattle, which will expire on Thursday, ended up 0.250 cent per pound to 106.200 cents. Most actively traded October finished up 1.450 cents at 108.375 cents, and above the 200-day moving average of 107.756 cents. Feeder cattle futures at the CME closed sharply higher, ignited by fund buying, live cattle futures gains and as much as $8 per cwt higher cash feeder cattle prices. August feeders, which will also expire Thursday, closed up 1.050 cents per pound to 142.425 cents. Most actively traded September closed 2.950 cents higher at 145.875 cents.