LIVESTOCK-Cattle futures pause after all-time highs; hogs end firm

By Julie Ingwersen

CHICAGO, June 11 (Reuters) - Live cattle futures on the Chicago Mercantile Exchange closed mostly lower on Wednesday, pausing after a climb to all-time highs, while soaring beef prices and last week's surge in cash cattle markets kept a floor under prices, traders said.

Most-active CME August live cattle futures LCQ25 settled down 0.175 cent at 218.025 cents per pound. The thinly traded June contract LCM25 settled up 12.350 cents at 227.825 cents after reaching 228.350 cents, the highest-ever price on a continuous chart LCc1 of front-month live cattle futures.

Yet, the June contract was still below the equivalent cash cattle price, given that slaughter-ready cattle traded lightly in Texas and Kansas this week at $235 per hundredweight.

August feeder cattle futures FCQ25 closed down 2.075 cents on Wednesday at 311.075 cents per pound.

Wholesale beef prices rose on tight U.S. cattle supplies and retailer demand ahead of the upcoming Father's Day and July Fourth holidays. The U.S. Department of Agriculture priced choice beef cuts at $374.76 per cwt on Wednesday afternoon, up $3 from Tuesday and the highest reading in five years. Select cuts rose 91 cents to $360.75 per cwt.

"The peak demand period on beef is Father's Day weekend. The air is thin up here. Seasonals are positive; the cash (market) so far is positive. Funds are all-in," said Don Roose, president of U.S. Commodities, noting that commodity funds hold a sizable net long position in live cattle futures.

Market players were monitoring news of immigration raids, watching for any impact on the U.S. slaughter pace. Meat producer Glenn Valley Foods was operating an Omaha, Nebraska, food packaging facility with about 30% of its staff after federal agents detained workers in a raid this week.

CME hog futures advanced, with most months setting life-of-contract highs on robust pork prices, strong cash hog markets and spillover strength from cattle.

July lean hog futures LHN25 settled up 0.650 cent at 108.850 cents per pound after hitting a contract high at 109.625 cents and August hogs LHQ25 finished up 0.400 cent at 110.200 cents.

The USDA reported the pork carcass cutout on Wednesday afternoon at $113.08 per cwt, up $2.20 from Tuesday. Pork bellies were priced at $174.56 per cwt, up $4.01 on the day.

Prices for pork bellies, used for bacon, typically rise in summertime as tomatoes ripen, generating demand for bacon, lettuce and tomato sandwiches, Roose noted.