LIVESTOCK-CME cattle futures dip on profit-taking, after hitting new highs during session

By P.J. Huffstutter

CHICAGO, May 1 (Reuters) - Chicago Mercantile Exchange cattle futures surged to new contract highs on Friday, but ultimately ended lower on profit-taking and weakness in wholesale prices ahead of the weekend, market analysts said.

A lack of fresh news capped prices, but recent strength in the cash market kept cattle futures somewhat underpinned, as did signs of strong consumer demand as the U.S. grilling season draws near, analysts said.

Meanwhile, CME lean hog futures struggled with technical resistance for a second day, along with concerns about consumer demand going into the grilling season.

Boxed beef cutout prices turned lower on Friday morning: Choice cuts were priced 24 cents lower at $389.28 per hundredweight (cwt) and select cuts fell $1.65 to $389.52 per cwt, according to U.S. Department of Agriculture data.

Beef packer margins continued to worsen: Packers were estimated to lose $197.95 per head of cattle slaughtered on Friday, compared with $187.30 per head on Thursday and $192.50 per head a week earlier, according to Denver-based livestock marketing advisory service HedgersEdge.com LLC.

Chicago Mercantile Exchange June live cattle LCM26 settled down 1 cent to end at 253.00 cents per pound, after setting a fresh contract high earlier in the session.

Meanwhile, August feeders FCQ26 ended down 1.350 cents at 372.175 cents per pound, while May feeder cattle FCK26 ended 1.25 cents lower at 371.400 cents per pound. Both contracts also set new highs on the day.

Benchmark June lean hogs LHM26 continued to ease, ending Friday 1 cent lower at 101.275 cents per pound in technical trading, analysts said.