LIVESTOCK-CME hog futures extend slide on technical selling

By Julie Ingwersen

CHICAGO, Feb 13 (Reuters) - Lean hog futures on the Chicago Mercantile Exchange ended lower on Friday, extending a week-long skid tied to long liquidation and profit-taking after the most-active April contract LHJ26 set a life-of-contract high last week.

CME April hogs LHJ26 settled down 0.550 cent at 91.275 cents per pound, marking a seventh consecutive lower close since peaking at 99.800 cents on February 4.

The market had risen through most of January on winter weather that complicated hog deliveries and worries about diseases reducing animal numbers. Managed funds expanded their net long position in lean hog futures throughout December and January.

Market sentiment appeared to turn bearish last week, analysts said, and chart-based selling accelerated this week as the April hog contract fell below its 20- and 50-day moving averages.

"The technical action turned totally sour," said Randy Place, an analyst at Hightower Report.

Pork prices have been choppy this week, offering scant support to futures. The U.S. Department of Agriculture priced pork carcasses on Friday afternoon at $95.16 per hundredweight (cwt), down 49 cents from Thursday.

Cattle futures closed mostly lower on Friday despite reports of firmer cash cattle trades. Market-ready cattle traded at $246 to $248 per hundredweight in Texas, traders said, up $1 to $3 from last week.

"We are not getting that extension of the (futures) rally here that you would think we would get, on these strong cash prices. To me, that is a warning sign," Place said.

CME April live cattle futures LCJ26 settled down 0.025 cent at 240.625 cents per pound. Feeder cattle futures ended mixed, with the benchmark March contract FCH26 ending up 0.425 cent at 366.150 cents per pound.

Choice cuts of beef were priced at $364.47 per cwt, down 37 cents from Thursday, according to USDA data.