LIVESTOCK-Cattle futures extend rebound from last week's plunge

By Julie Ingwersen

CHICAGO, Oct 21 (Reuters) - Chicago Mercantile Exchange live cattle futures rose on Tuesday for a second session as the market extended its recovery from Friday's steep selloff, buoyed by firm beef prices and tight U.S. cattle supplies.

CME December live cattle LCZ25 settled up 1.775 cents on Tuesday, or 0.73%, at 245.425 cents per pound, and November feeder cattle futures FCX25 ended up 0.800 cent or 0.21% at 373.475 cents per pound.

Both markets had plunged on Friday after U.S. President Donald Trump said his administration was working to lower beef prices. However, analysts have been skeptical about Trump's weekend suggestion that the country import more beef from Argentina, which last year represented only about 2% of total U.S. beef imports.

Tight cattle supplies continue to underpin futures as the U.S. cattle herd has thinned to its smallest size since the 1950s.

In the wholesale market, choice cuts of beef were priced at $371.93 per hundredweight, up $2.75 from Monday and the highest reading in nearly a month, according to U.S. Department of Agriculture data. Select cuts declined, falling 89 cents to $352.57 per cwt.

Beef packer margins remained deeply negative, with estimated losses of $216.25 per head on Tuesday, compared with losses of $196.60 per head a day earlier, according to livestock marketing advisory service HedgersEdge. LIV/H

CME lean hog futures ended higher. December hogs LHZ25 settled up 1.200 cents, or 1.46%, at 83.275 cents per pound and February LHG26 ended up 1.025 cents at 85.750 cents.

Both futures contracts were priced below the CME's Lean Hog Index .IHX, a two-day weighted average of cash prices, which was last down 0.54 cent at 95.58 cents per pound.