CME live cattle futures retreat from 1-month high

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CHICAGO — Chicago Mercantile Exchange live cattle futures closed lower on Monday, hit by profit-taking and technical selling after the benchmark December contract hit a one-month high on Friday, traders said.

A stronger close in corn futures pushed feeder cattle futures lower.

CME December live cattle futures settled down 0. 550 cent at 130. 425 per pound. The January most active contract for feeder cattle was 1. 975 cents to end at 159. 550 cents per pound.

“Live cattle futures ran into chart-related selling today, taking back a bit of last week’s solid gains,” Arlan Suderman, StoneX chief commodities economist, wrote in a client note. The 50- and 100-day moving averages for the CME December live cattle contract have converged near 131 cents, creating overhead resistance.

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Wholesale beef prices have been in a steady decline since late August, pressuring cattle futures, but beef values have stabilized since Oct. 13 when choice cuts dipped to $280. 02 per hundredweight (cwt). Choice cuts have hovered near that level in recent days, firming late last week and then falling 15 cents on Monday afternoon to $280. 09 per cwt, the U.S. Department of Agriculture reported.

Feeder cattle sagged as Chicago Board of Trade corn futures rose on Monday for a third straight session, signaling rising costs for livestock feed. CBOT corn rose by more than 1% Monday due to bullish weekly export data. There are also concerns that rising fertilizer prices could restrict plantings for the coming year.

CME lean hog futures closed higher on Monday with the benchmark December contract settling up 0. 475 cent at 78. 750 cents per pound. February lean hogs closed at 0. 450 cent at 81. 775 cents per pound. (Reporting by Julie Ingwersen; Editing by Devika Syamnath)

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