LIVESTOCK-Most-active hog futures retreat after matching contract high

CHICAGO, June 8 (Reuters) - Chicago Mercantile Exchange (CME) lean hog futures ended mixed on Tuesday after matching a contract high because of tight U.S. supplies and firm cash markets, analysts said.

The hog market has surged this year due to strong domestic demand and solid export sales to China, the world’s biggest pork consumer.

Profit-taking and technical selling dragged down most-active July hogs after the contract reached 123.600 cents per pound, its contract high from Monday.

July hogs ultimately settled 0.300 cent lower at 121.800 cents per pound. The pork cutout PRK-MAN-CARCS ended at $134.94 per cwt, up slightly from Monday.

In the beef market, August live cattle futures ended up 0.050 cent at 117.825 cents per pound at the CME. August feeder cattle closed 0.950 cent lower at 149.250 cents per pound.

Wholesale beef prices took a step back from recent surges, with select cuts falling $2.99 to $306.18 per cwt, according to the U.S. Department of Agriculture. Choice cuts rose 1 cent to $338.61 per cwt.

Profit margins for beef processors were $895.70 per head of cattle, up from $827.65 a week ago, the USDA said. Margins for pork processors were $27.35 per hog, up from $24.65 last week.

Livestock producers have grappled with high costs for animal feed after U.S. grain prices topped eight-year highs.

Chicago Board of Trade corn and soybean futures rose on Tuesday after a government report showed the condition of crops was worse than expected as a heat wave hit the U.S. Midwest.

In Brazil, chicken producers contracted to supply BRF Brasil Foods SA, the world’s biggest poultry exporter, decided to stop fattening chicks next week unless it paid higher prices to cover rising production costs. (Reporting by Tom Polansek in Chicago)