CHICAGO, April 3 (Reuters) - Chicago Mercantile Exchange live cattle futures fell to a fresh two-month low on Wednesday on technical selling and fund liquidation, as investors gauged whether beef demand would suffer amid recent news of avian influenza in dairy cattle.
Cattle futures have tumbled since last week on the news including one suspected transmission to a human who had contact with infected cattle. Although there has not been evidence that the virus can be passed through human food, some investors have been selling futures on fears that beef demand would decline.
"The bird flu news is a concern. But today's move was more technically driven," said Doug Houghton, analyst at Brock Associates.
"The beef market has been weakening, but that's been separate from the bird flu concerns. I'm sure there's worry that it (bird flu) will affect things, even though it shouldn't."
CME June live cattle dropped as low as 173.750 cents per pound, its lowest since Jan. 22, but closed well above the lows at 175.600 cents, down 0.775.
May feeder cattle ended down 2.275 cents at 242.575 cents per pound after sinking to a more-than-two-month low earlier in the session.
Beef prices have been easing recently after reaching multi-month peaks less than two weeks ago.
The choice boxed beef cutout price fell $2.86 per cwt on Wednesday to $301.30, the lowest since Feb. 23, according to U.S. Department of Agriculture data.
Only a small number of cash cattle have traded this week at feedlot markets in the Plains at steady to weaker prices. Analysts expect any upcoming sales to be flat to down from last week.
CME lean hog futures rose on Wednesday and hit contract highs in actively traded months. Good packer margins, solid pork exports and good pork demand provided support.
June hogs rose 1.025 cents to 104.750 cents per pound. (Reporting by Karl Plume; Editing by Vijay Kishore)
