LIVESTOCK-Cattle futures bounce on tight supply, steady demand

By Heather Schlitz

CHICAGO, Aug 22 (Reuters) - Chicago Mercantile Exchange cattle futures closed higher on Friday as a tight supply of cattle, higher boxed beef prices and resilient consumer demand for beef propelled futures higher, analysts said.

CME October live cattle futures LCV25 rose 3.15 cents to settle at 237.875 cents per pound. September feeder cattle FCU25 rose 4.65 cents to settle at 362.675 cents per pound.

The U.S. Department of Agriculture's monthly Cattle on Feed report, released after the market's close, showed the numbers of cattle on feed and marketed were in line with analysts expectations.

A historically low supply of cattle, which has been further constrained by the closure of the U.S.-Mexico border to feeder cattle imports, has fueled a rally in cattle futures.

Screwworm, a parasitic fly that eats livestock and wildlife alive, has moved north in Mexico toward the U.S. border and prompted the USDA to cut off Mexican cattle imports.

The choice boxed beef cutout value was last up 5 cents to $407.91 per hundredweight (cwt), according to USDA data. The select beef cutout was up 6 cents to $383.66 per hundredweight.

Though beef prices have surged to near-record highs, consumer demand has remained resilient, with increased retail demand ahead of the U.S. Labor Day holiday also supporting prices.

Lean hog futures ended slightly lower as CME October lean hogs LHV25 rose 1.275 cents to settle at 91.2 cents per pound.