LIVESTOCK-CME lean hogs turn lower, cattle futures lower to mixed

By P.J. Huffstutter

CHICAGO, March 11 (Reuters) - Chicago Mercantile Exchange nearby lean hog futures turned lower on Monday, with the front-month contract falling as market participants sought profits and continued to adjust their positions as part of the so-called Goldman roll, traders said.

Tuesday was the third day of the five-session roll for funds tracking Goldman Sachs Commodity Index, according to traders.

In CME's lean hog market, for example, investors were selling April LHJ25 futures and buying June LHM25 as part of this roll, traders said.

But the April contract saw prices drop sharply later in the session, even as wholesale prices fell. The U.S. Department of Agriculture priced pork carcasses and most primal cutout values lower on Tuesday afternoon.

Meanwhile, CME live cattle futures turned lower and feeder cattle were mixed, amid concern that U.S. consumers may start hunting for budget dining options after the S&P 500 this week recorded its most significant one-day drop since December 18.

U.S. stocks also closed lower on Tuesday, as a threat of fresh U.S. tariffs along with hopes of a possible peace deal between Ukraine and Russia fueled volatility.

Traders call it the "wealth effect" or the psychological effect consumers have to falling stock prices, said Dan Norcini, an independent livestock trader.

"When the stock market falls, and they feel 10% or 15% more poor from their 401Ks dropping, they tend to be less likely to buy the expensive steak dinner out at the restaurants and instead look for cheaper alternatives," Norcini said.

CME's April lean hog contract LHJ25 settled down 1.750 cents at 86.550 cents per pound. June hogs LHM25 ended down 0.450 cent at 98.375 cents.

CME April live cattle LCJ25 settled down 1.025 cents at 199.550 cents per pound.

CME feeder cattle futures ended the day mixed. April feeder cattle futures FCJ25 settling down 0.225-cent at 277.700 cents per pound. May feeders FCK25 ended up 0.400-cent at 278.95 cents per pound.