LIVESTOCK-CME cattle futures rise as weather limits slaughter

By Renee Hickman

CHICAGO, March 19 (Reuters) - Chicago Mercantile Exchange cattle futures rallied Wednesday as harsh weather conditions in Nebraska and Kansas limited slaughter operations, according to analysts.

CME June live cattle LCM25 ended up 1.850 cents at 202.850 cents per pound, hitting lifetime highs alongside most other contracts.

CME April feeder cattle FCJ25 settled up 2.175 cents at 286.725 cents per pound, reaching life of contract highs with all other contracts.

High winds and snow in Nebraska and Kansas lead to road closures and other logistical issues near major packing plants, delaying slaughter operations, according to Cassie Fish, analyst and author of the Beef newsletter.

The USDA reported a daily cattle slaughter of 96,000, down from 123,000 on Tuesday.

"That big, big storm had a big impact," said Fish.

Those delays also drove up boxed beef prices, said Fish, with choice cuts up $6.29 to $329.61 per hundredweight (cwt).

Select cuts fell $0.55 to $308.68 per cwt.

Feeder cattle saw its fourth day of gains, having risen Tuesday on expectations that the U.S. Department of Agriculture's upcoming monthly cattle on feed report would show decreased placements compared to this time last year, according to analysts.

The report, due Friday, is expected to show February cattle placements down 14% from last year, according to an average of estimates in a Reuters poll of analysts.

Lean hogs fell for a second day in a row as investors had ongoing concerns about the possibility of retaliation against U.S. agricultural exports because of new U.S. tariffs set to go into effect in April.

Mexico, for example, is a leading importer of U.S. pork.

CME's April lean hog contract LHJ25 settled down 2.025 cents at 85.575 cents per pound.

In wholesale pork, carcasses fell $0.45 to $95.19 per cwt and the lean hog index price for the two days ending on March 17 was at $89.32.