By P.J. Huffstutter

CHICAGO, Nov 24 (Reuters) - Chicago Mercantile Exchange's live cattle and feeder cattle futures dropped by the daily trading limit on Monday, as investors and funds scrambled to respond to a flood of bullish news, ranging from signs that U.S. cattlemen are raising heavier animals to expectations for increased domestic beef imports, analysts said.

Hog futures found support as traders questioned the pace of China's hog herd culling, as any significant slowdown could open a door of opportunity for U.S. exports, said market analysts. In CME's lean hog market, February futures LHG26 finished the session up 1.475 cents at 79.175 cents per pound.

Meanwhile, cattle futures tumbled. CME February live cattle futures LCG26 closed down 7.250 cents at 207.525 cents per pound, while most-active June live cattle LCM26 was also limit-down 7.250 cents at 201.725 cents per pound.

January feeder cattle futures FCF26 tumbled 9.250 cents to finish at 304.975 cents per pound, March feeders FCH26 settled down 9.250 cents at 297.800 cents per pound.

Much of Monday's early-session slump was partly a delayed reaction to President Donald Trump on Thursday cutting the 40% tariffs on Brazilian food products, including beef, that he imposed this summer, said Karl Setzer, a partner at Consus Ag. The duties had slowed U.S. imports of supplies used to make hamburger meat from the world's biggest beef exporter.

Traders were also responding to news released after markets closed on Friday that there were 11.7 million cattle on feed in feedlots as of November 1, down 2.2% from a year earlier, the U.S. Department of Agriculture said in a monthly report.

While this was in line with analysts' expectations, the news also highlights the fact that the animals themselves were likely being held back from slaughter — and therefore weighing more when sold for processing, market analysts said.

"When placements were down 10% and marketing was down 8% — but those on feed numbers being just about 2% down? That's a sign that there are still a lot of cattle out there being fed," Setzer said.

Then, there was last week's announcement that Tyson Foods TSN.N would close a major beef plant in Lexington, Nebraska, and reduce operations at another facility in Amarillo, Texas. Tight cattle supplies have raised costs for meatpackers.

Signs of a softening U.S. labor market also weighed on cattle futures, as traders anticipate that demand for higher-priced cuts of beef may cool, analysts said. The jobless rate rose to 4.4%, its highest level in four years, from 4.3% in August, the federal Labor Department said last week.

For Tuesday's trading session, the feeder cattle futures trading limits will widen to 13.75 cents per pound and live cattle will expand to 10.75 cents per pound, CME said on its website.

(Reporting by P.J. Huffstutter; Editing by Alan Barona)

((pj.huffstutter@tr.com; 312-730-2200))