LIVESTOCK-CME cattle higher on buying interest, tight supply

By Heather Schlitz

CHICAGO, March 4 (Reuters) - Chicago Mercantile Exchange live and feeder cattle futures turned higher on Wednesday on buying interest fueled by bullish fundamentals, including a 75-year-low cattle herd and the northward spread of New World Screwworm.

CME April live cattle futures LCJ26 closed 4.225 cents higher to end at 238.35 cents per pound. April feeder cattle FCJ26 closed 7.45 cents higher to end at 360.75 cents per pound.

Lower cash cattle prices have helped shore up meatpacker margins, though they still remain deeply in the red.

The average beef packer margin was estimated at a negative $128.00 per head, compared with a negative $269.25 per head a week ago, according to livestock marketing advisory service HedgersEdge.

The tight supply of cattle has helped counteract pressure from the weakening cash market, analysts said.

A looming strike at a large beef plant in Greeley, Colorado, hung over the market, as a loss of production would dent demand for fed cattle and further weaken cash markets.

For boxed beef, the U.S. Department of Agriculture reported that values for choice cuts rose by 52 cents to $388.57 per hundredweight, while select cuts increased by $1.77 to $388.57 per hundredweight.

Beef prices may come under seasonal pressure as warm weather and grilling season likely remain months away.

Lean hog futures ended slightly higher on technical buying.

CME April hogs LHJ26 closed 1.325 cents higher to end at 97.075 cents per pound.