CHICAGO, June 8 (Reuters) - Chicago Mercantile Exchange
(CME) lean hog futures ended mixed on Tuesday after matching a
contract high because of tight U.S. supplies and firm cash
markets, analysts said.
The hog market has surged this year due to strong domestic
demand and solid export sales to China, the world's biggest pork
Profit-taking and technical selling dragged down most-active
July hogs after the contract reached 123.600 cents per
pound, its contract high from Monday.
July hogs ultimately settled 0.300 cent lower at 121.800
cents per pound.
The pork cutout <PRK-MAN-CARCS> ended at $134.94 per cwt, up
slightly from Monday.
In the beef market, August live cattle futures ended
up 0.050 cent at 117.825 cents per pound at the CME. August
feeder cattle closed 0.950 cent lower at 149.250 cents
Wholesale beef prices took a step back from recent surges,
with select cuts falling $2.99 to $306.18 per cwt, according to
the U.S. Department of Agriculture. Choice cuts rose 1 cent to
$338.61 per cwt.
Profit margins for beef processors were $895.70 per head of
cattle, up from $827.65 a week ago, the USDA said. Margins for
pork processors were $27.35 per hog, up from $24.65 last week.
Livestock producers have grappled with high costs for animal
feed after U.S. grain prices topped eight-year highs.
Chicago Board of Trade corn and soybean futures rose on
Tuesday after a government report showed the condition of crops
was worse than expected as a heat wave hit the U.S. Midwest.
In Brazil, chicken producers contracted to supply BRF Brasil
Foods SA, the world's biggest poultry exporter,
decided to stop fattening chicks next week unless it paid higher
prices to cover rising production costs.
(Reporting by Tom Polansek in Chicago)