LIVESTOCK-CME hog futures extend retreat from last week's top; cattle end lower

By Julie Ingwersen

CHICAGO, Feb 10 (Reuters) - Benchmark April lean hog futures on the Chicago Mercantile Exchange (CME) declined on Tuesday for a fourth straight session, pressured by speculative profit-taking after last week's life-of-contract high amid a lack of supportive news, traders said.

CME April hogs LHJ26 settled down 1.225 cents at 95.500 cents per pound. Front-month February hogs LHG26 closed down 0.250 cent at 86.850 cents, just above the CME's Lean Hog Index .IHX, a two-day weighted average of cash prices, which was last at 86.46 cents.

Managed commodity funds hold a sizable net long position in CME hog futures, leaving the market vulnerable to bouts of long liquidation.

"The speculative net long position has risen strongly.... it's getting up near the highs that it's been at before," said Doug Houghton, analyst for Brock Associates.

"It is an old bull market at this point, without any major corrections," Houghton said.

Wholesale pork values inched lower. The U.S. Department of Agriculture priced pork carcasses on Tuesday afternoon at $95.46 per hundredweight, down 37 cents from Monday.

Cattle futures fell in range-bound trade as brokers awaited direction from cash cattle markets. CME April live cattle futures LCJ26 settled down 0.775 cent at 237.425 cents per pound while March feeder cattle futures FCH26 finished down 2.675 cents at 364.775 cents.

Historically tight U.S. cattle supplies have elevated cash cattle prices in recent weeks, while meat packers' profit margins have fallen to deeply negative levels.

Packers were losing nearly $270 per head of cattle as of Tuesday, according to Denver-based livestock marketing advisory service HedgersEdge.com LLC. LIV/H

The USDA reported Tuesday's cattle slaughter at 116,000 head, up from 115,000 head a week ago but below the year-ago figure of 122,072 head. LIV/KILL