LIVESTOCK-Cattle tumble after Trump vows to lower beef prices

By Karl Plume

CHICAGO, Oct 17 (Reuters) - Chicago Mercantile Exchange live cattle futures tumbled on Friday and feeder cattle contracts plunged by their daily trading limits after U.S. President Donald Trump said his administration was working to lower beef prices, analysts said.

Both markets scaled to new highs this week, making them vulnerable to profit taking.

Beef prices have been hovering near record highs as the U.S. cattle herd has thinned to the smallest since the 1950s and as cattle imports from Mexico were suspended due to the spread of the parasitic screwworm south of the border.

Trump did not provide any details about the plan.

"Cattle (futures) were both at all-time highs and overbought, causing a massive flush of weak longs following the White House announcement, especially in feeders where we had limit losses," said Karl Setzer, partner at Consus Ag Consulting.

CME December live cattle LCZ25 ended 6.050 cents lower at 241.825 cents per pound while benchmark November feeder cattle FCX25 tumbled by their daily limit of 9.250 cents to 371.700 cents per pound.

After the limit-down close in feeders, daily trading limits in live cattle will expand to 10.750 cents for Monday's session while feeder cattle limits will expand to 13.750 cents, the CME said.

Beef prices edged higher on Friday, with choice cuts up 66 cents at $366.77 per hundredweight and select cuts up $1.34 at $350.27 per cwt, according to U.S. Department of Agriculture data.

Cash cattle prices were sharply higher this week as packers worked to replenish depleted inventories. Prices in Texas, Kansas and Nebraska were up at least $5 from last week at $240 per cwt, according to traders.

CME lean hog futures were mostly lower on Friday as good supplies weighed on the market. December hogs LHZ25 were down 0.225 cent at 82.375 cents per pound.