LIVESTOCK-Cattle futures scale new highs as beef prices climb

By Julie Ingwersen

CHICAGO, June 9 (Reuters) - Chicago Mercantile Exchange cattle futures hit contract highs on Monday, extending Friday's strong close as tight U.S. cattle supplies and firm cash markets continued to drive beef prices higher, traders said.

CME August live cattle futures LCQ25 settled up 0.375 cent at 219.250 cents per pound after setting a contract high at 220.050 cents. CME August feeder cattle FCQ25 ended up 1.5 cents at 311.650 cents per pound.

Cash markets for slaughter-ready cattle were quiet after trades last week went as high as $235 per hundredweight (cwt) in the southern Plains, up about $13 from the week prior.

Wholesale beef prices rose, with choice cuts priced at $367.25 per cwt on Monday afternoon, up $2.17 from Friday, according to U.S. Department of Agriculture data.

"Packers continue to put higher money on the table, and beef (prices) seem to keep marching higher. It all goes back to those tight cattle numbers that we have had for years," said Dan Norcini, an independent trader.

The size of the U.S. cattle herd has been hovering at a 74-year low due to several years of drought, and rebuilding is expected to take several more years.

"We are waiting around to see how long this (higher trend in beef prices) can continue, and it continues to defy expectations," Norcini said.

Hog futures also notched contract highs in most contract months, lifted by firm cash hog prices. CME July hogs LHN25 settled up 0.100 cent at 107.200 cents per pound after setting a contract high at 107.650 cents.

The USDA reported the pork carcass cutout on Monday afternoon at $110.29 per cwt, down $1.22 from Friday, reflecting a drop of nearly $6 in hams.