LIVESTOCK-CME cattle futures recover, though declining demand weighs

By Heather Schlitz

CHICAGO, June 26 (Reuters) - Chicago Mercantile Exchange cattle futures ended higher on Thursday after the U.S. Department of Agriculture reported lower red meat inventories, though concerns over waning demand from U.S. consumers and retailers limited gains, traders said.

CME August live cattle LCQ25 settled 0.225 cent higher to 209.2 cents per pound. August feeders FCQ25 finished the day up 1 cent at 303.30 cents per pound after trading both sides of unchanged. The choice boxed beef cutout value rose 11 cents to $395.05 per cwt and select cuts rose $3.45 to $379.74 per cwt.

Most retailers have already purchased the meat they need for the upcoming Fourth of July holiday. Meanwhile, traders say that high beef prices may be turning consumers away from purchasing beef and toward cheaper meats such as pork and chicken.

CME lean hog futures ended down, with actively traded August LHQ25 settling down 0.975 cent to 110.25 cents per pound.

The USDA in its quarterly hogs and pigs report that was released after the market's close said the inventory of hogs and market-ready hogs increased slightly from the same time period in the previous year.