LIVESTOCK-CME cattle tumble on inflation worries amid crude oil surge

By Karl Plume

CHICAGO, March 9 (Reuters) - Chicago Mercantile Exchange live and feeder cattle futures fell on Monday as rising gasoline prices and a stock market downturn stoked broader economic worries and fueled concerns about consumer spending on beef.

Managed funds exited long positions for a second straight session and technical selling accelerated the market's decline as actively traded contracts fell below recent lows and broke through key technical chart support levels.

Elevated feed corn prices further pressured the feeder cattle market.

Markets, including commodities, have been riled by hostilities in the Middle East since U.S. President Donald Trump and allies in Israel attacked Iran more than a week ago, disrupting crude oil production and shipping across the region and sending crude oil prices to highs not seen since 2022. Equities markets spent much of the day near multi-month lows. O/R

"The cattle are being dragged down by the corn rally and Wall Street weakness, and the feeders have been the ones taking the biggest hit," said Mike Zuzolo, president of Global Commodity Analytics.

A late-session crude oil drop and stock market rebound came too late for cattle markets.

CME April live cattle LCJ26 ended 4.425 cents lower at 230.150 cents per pound, after hitting their lowest point since mid-December. April feeders FCJ26 touched limit-down and settled at 346.550 cents per pound, down 5.075 cents on the day.

Beef packers have been acquiring cattle at lower prices in recent weeks, but their margins remain in the red. Pared-back production, however, has buoyed wholesale beef prices, with choice and select cuts gaining more than $4 per hundredweight on Monday, according to data from the U.S. Department of Agriculture.

The average beef packer margin was estimated at a negative $117.95 per head on Monday, compared with losses of $220.00 per head a week ago, according to livestock marketing advisory service HedgersEdge.

Lean hog futures fell on Monday as spillover pressure from lower cattle more than offset support from firm pork demand.

CME April hogs LHJ26 closed 0.800 cent lower at 94.825 cents per pound.