LIVESTOCK-CME cattle futures higher as traders focus on JBS plant strike

CHICAGO, March 27 (Reuters) - Chicago Mercantile Exchange live and feeder cattle futures ticked higher on Friday on market rumors that the JBS plant in Greeley, Colorado, has replaced much of the labor force that is still on strike, rumors the meat company denied.

The union representing the striking workers also strongly refuted the claims. Roughly 3,800 workers have been on strike for almost two weeks, causing production at the plant to slow.

The rumors helped prop up cattle futures on hopes that cash bids would strengthen and demand for feeder cattle would rebound, traders said.

A JBS spokesperson told Reuters the company was not hiring replacement workers at this time.

Kim Cordova, president of UFCW Local 7 which represents the Greeley workers, said only 100 people are working inside the plant, which would represent only a fraction of the thousands of workers who normally staff the facility.

Many of the jobs at the plant, particularly on the slaughter line, require training and technical skill to execute correctly.

"They're rarely bringing in cows. They definitely don't have enough people to run production," Cordova said.

The strike has reduced U.S. beef production capacity at a time when consumers are facing record prices.

Strength in the wholesale choice beef market also gave cattle futures a boost. The U.S. Department of Agriculture reported on Friday afternoon that choice cuts of boxed beef rose $3.12 to $392.97 per hundredweight (cwt). However, select cuts fell $1.97 to $389.87 per cwt, USDA data showed.

CME June live cattle LCM26 settled 3.975 cents higher to 238.775 cents per pound. CME April feeders FCJ26 finished 6.375 cents higher to 361.45 cents per pound.

The U.S. Department of Agriculture's hogs and pigs report released after the close of trade on Thursday showed the total hog herd was roughly the same as the previous year, while analysts surveyed by Reuters on average had expected the government to show a slightly larger herd, at 100.9% of a year ago.

Hog futures ticked higher on the news on Friday.

CME June lean hog futures LHM26 ended up 1.825 cent to end at 206.125 cents per pound.