LIVESTOCK-CBOT cattle futures climb on rising meat demand, stronger wholesale beef prices

By P.J. Huffstutter

CHICAGO, March 30 (Reuters) - Chicago Mercantile Exchange live and feeder cattle futures turned higher on Monday, extending last week's rally on stronger wholesale prices and anticipated consumer demand for red meat ahead of grilling season, market analysts said.

Weakness in Chicago Board of Trade corn futures also gave feeder cattle a boost during the trading session, traders said. Lower corn prices can signal cheaper animal feed, supporting feeder cattle.

Strength in the wholesale choice beef market also gave cattle futures a boost. The U.S. Department of Agriculture reported on Monday afternoon that choice cuts of boxed beef rose $1.13 to $394.10 per hundredweight (cwt), and select cuts rose $1.14 to $391.01 per cwt.

"It's already grilling season in Texas and those warmer temperatures are moving north, as we're also seeing demand for beef firming," said Dan Norcini, an independent livestock trader.

Meanwhile, CME lean hog futures eased on a flurry of short-term profit taking from Friday's price rally. Hog traders had been anticipating the potential of a particularly bearish U.S. Department of Agriculture quarterly hog and pig report last week, but the results were mostly in line with expectations.

U.S. pork supplies are tightening. The total number of hogs in the U.S. totaled 74.3 million on March 1, according to USDA - up 0.44% from the same period a year earlier. Meanwhile, there were 5.89 million hogs kept for breeding, about 1% fewer than last March.

"There was a lot of negativity going into the report," Norcini said. "People were expecting the worst, and when they didn't get it, you saw the rally happen."

CME June live cattle LCM26 settled 1.425 cents higher to 240.200 cents per pound. CME May feeders FCK26 finished 1.500 cents higher at 361.325 cents per pound.

CME June lean hog futures LHM26 ended 0.250 cent lower, settling at 105.875 cents per pound.