LIVESTOCK-CME live cattle futures fall on a lack of packer demand

CHICAGO, Sept 21 (Reuters) - Chicago Mercantile Exchange live cattle futures fell on Tuesday, pressured by weak cash cattle trade as packer demand remains light, analysts said.

"The lack of bids is daunting," said Joe Kooima, commodity broker at Kooima Kooima Varilek Trading Inc.

Kooima noted packers have enough cattle purchased on negotiated contracts to meet nearby demand.

Cash cattle trade was "at a standstill" according to the U.S. Department of Agriculture, with live purchases ranging from $123 to $124 per cwt in both the Northern and Southern U.S. Plains.

CME October live cattle futures ended 0.325 cent lower at 122.450 cents per lb., while the most-active December live cattle fell 0.275 cent to 127.800 cents.

Feeder cattle futures climbed as feed grain prices eased, with benchmark November feeders firmed 0.325 cent higher at 156.950 cents per lb.

While live cattle face softer demand from packers, boxed beef prices are easing, though remain elevated. Choice boxed beef cutout was falling $4.29 to $311.37 per cwt, while select cuts dipped $2.74 to $278.01, the USDA said.

Packer margins firmed to $787.40 per head, though still below a week ago, according to livestock marketing advisory service HedgersEdge.com LLC.

Meanwhile, CME lean hog contracts eased as season supply pressure adds to weaker demand, while threats of African Swine Fever (ASF) persist.

October lean hogs eased 0.600 cent to 84.375 cents per pound while the most-active December contract fell 0.625 cent to 73.600 cents per pound.

A case of ASF was discovered in Haiti, near the border with the Dominican Republic, which confirmed a case in July, fueling concerns about the disease's spread in the Americas.

Pork demand could rally more quickly than beef, supporting futures, Kooima noted, though he thinks ASF fears will keep the market from climbing.

"There might be a lack of follow through from the funds," he said. "they aren’t willing to have much exposure with that ASF talk out there." (Reporting by Christopher Walljasper in Chicago; Editing by Krishna Chandra Eluri)