LIVESTOCK-Cattle futures sag on weak cash markets, US economic uncertainty

By Julie Ingwersen

CHICAGO, Nov 13 (Reuters) - Cattle futures on the Chicago Mercantile Exchange declined on Thursday, pressured by softer cash cattle prices compared to last week and worries about the overall health of the U.S. economy, analysts said.

CME December live cattle futures LCZ25 settled down 6.275 cents at 219.000 cents per pound. January feeder cattle FCF26 futures ended down 9.025 cents at 318.450 cents per pound and March feeders FCH26 finished down their daily 9.250-cent limit at 311.775 cents.

Daily limits will widen to 13.750 cents for feeder cattle futures and 10.750 cents for live cattle in Friday's trading session, the exchange said.

Market-ready cattle traded lightly in Kansas and Texas cash markets at $228 per hundredweight (cwt), traders said, down $2 to $4 from last week's cash trades.

"Live cattle futures are under pressure from light cash trade at lower prices in Plains direct markets," said Doug Houghton, analyst with Brock Associates.

Declines on Wall Street added to bearish sentiment, raising uncertainty about consumer demand for pricey cuts of beef. All three major U.S. stock indexes posted their steepest daily percentage declines in over a month.

"Economic concerns are likely weighing on futures with U.S. stock markets sharply lower. There are concerns about the health of the U.S. employment market and the overall economy," Houghton added.

Traders continue to monitor an outbreak of the New World screwworm parasite in Mexico. The U.S. Department of Agriculture announced the opening of a sterile fly dispersal facility in Tampico, Mexico, as part of efforts to eradicate the pest by reducing the population of wild parasitic flies.

Hog futures fell on spillover weakness from the cattle markets, seasonal weakness in cash hog prices along with technically driven selling, Houghton said.

CME December lean hog futures LHZ25 settled down 2.550 cents at 78.075 cents per pound.

Traders were looking ahead to Friday's monthly crop supply/demand report from the USDA, the first since mid-September. The 43-day U.S. government shutdown, which ended this week, had suspended the release of most USDA reports.