LIVESTOCK-CME cattle higher as grilling season ramps up

By Heather Schlitz

CHICAGO, May 8 (Reuters) - Chicago Mercantile Exchange live cattle and feeder cattle rose on Thursday, as demand surged ahead of Mother's Day and the start of grilling season, analysts said.

A tight cattle supply and strong demand from consumers and retailers has propelled cattle futures higher, while hog futures chopped sideways amid a lack of fresh news and lackluster demand.

CME June live cattle futures LCM25 settled 1.725 cents higher at 214.25 cents per pound. August feeder cattle futures FCQ25 rose 2.65 cents to end at 301.25 cents per pound.

"We're still in the prime of our demand season," Matthew Wiegand, broker at FuturesOne, said. "Longer-term demand may be a bigger concern."

Despite some worries about price-conscious consumers shying away from pricey beef, boxed beef prices have held strong so far.

Choice cuts of boxed beef rose $1.65 to $347.80 per hundredweight on Thursday morning, while select cuts rose 58 cents to $334.58 per hundredweight, according to the U.S. Department of Agriculture data.

Meanwhile, rising equities markets have also buoyed cattle futures. Global equities rose on Thursday, with Wall Street outperforming, while the dollar and Treasury yields also gained after the United States and the United Kingdom outlined a trade deal.

CME June lean hog futures LHM25 fell 0.15 cent to close at 97.175 cents per pound. Spread trading, which involves traders buying cattle contracts and selling lean hog contracts, contributed to the slide in hog futures on Thursday, Wiegand said.

The loss of China as a major export market for U.S. pork amid the ongoing trade war has weighed on prices, though the upcoming U.S.-China trade talks in Switzerland have added some optimism into the market.