CME cattle futures end mixed after two-day rebound from multi-month lows

CHICAGO, Nov 11 (Reuters) - Chicago Mercantile Exchange live cattle futures ended mixed on Wednesday, with actively traded nearby contracts pressured by profit taking and technical selling following two sessions of strong gains.

Tight cattle supplies and improving packer margins underpinned the market, while feeder cattle futures posted modest gains as feed corn prices eased.

Before rebounding this week, both markets had been on a two-week slide that dragged prices to multi-month lows, leaving them poised for a technical rebound.

However, worries about consumer demand for high-priced beef and stubbornly high inflation continued to hang over the market.

"It feels more like a technical correction of an oversold market than an absolute turn in the market," said Jim McCormick, chief operating officer at AgMarket.

"I think demand is going to be the key going into the holidays. The consumer's pinched. Is he going to be buying beef or is he going to shy away to maybe a cheaper form of protein as he's trying to prepare for a very expensive Christmas season?"

Beef packer margins improved in Wednesday to an estimated $66.65 per head, up from a negative $21.05 per head last week, according to livestock marketing advisory service HedgersEdge.

CME December live cattle settled 0.225 cent higher at 218.975 cents per pound. The benchmark contract touched its lowest level since December 2 on Friday.

January feeder cattle held technical support at its 100-day moving average but failed to break through chart resistance at its 50-day average. The contract ended 1.125 cents higher at 327.800 cents per pound.

Lean hog futures finished the day mostly lower as short covering and bargain buying was countered by selling pressure tied to sluggish demand for pork.

CME December lean hog futures notched a 0.225-cent gain to settle at 56.025 cents per pound while nearly all deferred contracts ended lower on the day.

(Reporting by Karl Plume; Editing by Perla Velasco)

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