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Profit-taking and technical correction bring LIVESTOCK-Cattle Futures to a lower end.

Chicago Mercantile Exchange beef futures fell for a second session in a row on Wednesday, as profit-taking and technical selling corrections from recent highs occurred.

Since months, beef futures have been supported by elevated prices. Traders are now assessing whether the high prices will begin to affect beef demand as the outdoor grilling season ends.

Analysts said that losses were however limited, as the cash cattle price remained higher than futures.

It's a bull market driven by cash. Don Roose said that at this time of the year, October, cattle prices should be equal to cash.

CME October Live Cattle Futures finished 1.200 cents below at 238,325 cents a pound. This is a larger discount than the $242 per 100weight that packers were willing to pay for cattle on feedlot markets in the previous week.

Cash cattle prices may be stable or even higher than last week, according to the bids of packers at midweek.

Beef packer profits remained positive despite tight supplies of cattle and high cattle prices, as beef values hovered at multi-year heights.

The U.S. Department of Agriculture reported that the value of the boxed choice beef cutout rose $2.59 per cwt on Wednesday, reversing the previous-day decline. This is the highest price since May 2020. Select cutout increased by $1.56 per cwt to $387.73.

According to HedgersEdge, a livestock marketing advisory service, the average beef packer's margin fell to $86.20 a head on Wednesday, from $99.25 per head a day before but was up from $82.55 compared to last week.

Live cattle prices also fell, and the October contract ended the day at 361,500 cents per kilogram.

CME lean-hog futures fell on Wednesday, after seven consecutive sessions of price gains. Prices had reached their highest level in ten weeks.

Analysts said that the market was impacted by the spillover pressure of lower cattle futures, and the expectation for seasonal increases in hog supply into the fourth quarter.

CME October lean pork ended at 93.8225 cents per pound, a decrease of 1.725 cents.

(source: Reuters)