LIVESTOCK-CME cattle falter on profit-taking, choppy equity markets

By Heather Schlitz

CHICAGO, May 7 (Reuters) - Chicago Mercantile Exchange live cattle and feeder cattle futures ticked down on Wednesday on falling equity markets and long liquidation, traders said.

Hog futures tilted downward as Chinese retaliatory tariffs against U.S. agricultural products weighed. China is a major importer of U.S. pork.

"The huge import tariffs takes away that market," Doug Houghton, analyst at The Brock Report, said.

CME June live cattle futures LCM25 fell 1.15 cents to close at 212.525 cents per pound. August feeder cattle futures FCQ25 fell 0.6 cent to end at 298.60 cents per pound.

Cattle futures have continued to draw underlying support from a strong cash market, high boxed beef prices and resilient consumer demand for beef. However, some traders worry that weakening consumer sentiment and shaky equity markets could dampen demand for beef and that some may trade down to less pricey meats such as chicken.

Choice cuts of boxed beef rose $1.43 to $346.10 per hundredweight on Wednesday morning, while select cuts rose 94 cents to $333.91 per hundredweight, according to U.S. Department of Agriculture data.

CME June lean hog futures LHM25 fell 0.25 cent to close at 97.325 cents per pound.

Though a planned meeting between senior U.S. and Chinese officials boosted hopes for easing tensions earlier in the session, sentiment soured after U.S. President Donald Trump said he would not preemptively lower tariffs on China.

A lack of clear details on trade negotiations has left traders impatient, and market players are closely monitoring twists in the two countries' trade relationship.