LIVESTOCK-CME cattle recovers on tight supply

By Heather Schlitz

CHICAGO, Sept 30 (Reuters) - Chicago Mercentile Exchange cattle futures recovered on Tuesday on a tight supply of cattle that has been exacerbated by the closure of the U.S.-Mexico border to cattle imports.

A looming U.S. government shutdown that could start at midnight encouraged caution on livestock futures and wider financial markets. MKTS/GLOB

CME December live cattle LCZ25 rose 0.95 cent to end at 234.775 cents per pound. CME November feeder cattle FCX25 rose 5.475 cents to end at 359.35 cents per pound.

CME December hogs LHZ25 closed 1.625 cents lower at 88.725 cents per pound.

Despite gains, declining wholesale beef prices, weaker cash markets and long liquidation have continued to weigh on live and feeder cattle futures.

Wholesale beef prices have continued a seasonal decline as weather cools and grilling season is put in the rearview mirror. The USDA priced choice cuts of beef was at $370.63 per hundredweight (cwt) on Tuesday morning, down 5 cents from the previous day. Select cuts also fell $2.06 to $346.83 per cwt.

Traders remained on edge about the spread in Mexico of New World screwworm, a damaging livestock pest, after the USDA said on Sunday that Mexico had confirmed a case less than 70 miles from the U.S. border.

After the close of trade on Tuesday, the U.S. Food and Drug Administration announced it had approved Dectomax-CA1, an injectible anti-parasitic medication, to prevent and treat screwworm in cattle.