LIVESTOCK-CME cattle futures pull back from contract highs

By Tom Polansek

CHICAGO, April 30 (Reuters) - Chicago Mercantile Exchange live cattle and feeder cattle futures fell on Wednesday in a setback from recent contract highs.

Profit-taking dragged down prices as economic concerns increased following a first-quarter U.S. economic contraction, livestock traders said. They worry a weak economy can hurt demand for beef.

CME June live cattle futures LCM25 closed down 1.8 cents at 208.400 cents per pound. The contract earlier set a high of $211, supported by recent records in cash prices and tight U.S. supplies.

August feeder cattle futures FCQ25 fell 1.875 cents to end at 295.025 cents per pound. The contract retreated from a high on Tuesday.

Concerns about a slowdown in U.S. slaughtering added pressure to prices, traders said. Beef processors have been losing money on each head of cattle they slaughter due to high prices and limited supplies.

Their losses recently exceeded $100 per head and were estimated at $72.20 per head on Wednesday, livestock marketing advisory service HedgersEdge.com.

Processors slaughtered an estimated 121,000 cattle, down from 122,000 cattle a week ago and 123,536 cattle a year ago, according to the U.S. Department of Agriculture.

In CME's lean hog market, June futures LHM25 dropped 1.175 cents to 98.275 cents per pound.