LIVESTOCK-Cattle futures climb on tight supplies

CHICAGO, Aug 27 (Reuters) - Chicago Mercantile Exchange cattle futures rose to contract highs on Wednesday as a tight cattle supply continues to support prices.

CME October live cattle futures LCV25 reached contract highs before settling up 1.325 cents at 239.525 cents per pound. September feeder cattle FCU25 rose 0.350 cent to settle at 365.400 cents per pound, also hitting contract highs.

Ongoing issues with limited cattle supplies were behind the second straight day of rallies, according to Karl Setzer, partner at Consus Ag Consulting.

Those cattle conditions continue to attract managed money interest, Setzer said. But, he added, "we are seeing more push back at the retail level on high-priced beef though, and this may start to temper buying interest."

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

The choice boxed beef cutout value was down $1.33 to $411.84 per hundredweight, according to USDA data on Wednesday afternoon. The select beef cutout was down $3.05 at $387.71 per hundredweight.

Setzer said pork inventories were also low, driving up futures prices.

CME October lean hogs LHV25 rose 0.480 cent to settle at 93.900 cents per pound.

The lean hog index price for the two days ending August 25 was $106.86 and for the two days ending August 22 was $107.27.