By P.J. Huffstutter

CHICAGO, June 17 (Reuters) - Chicago Mercantile Exchange cattle futures closed mixed after choppy trading on Wednesday as traders sought profits early in the session and adjusted their positions ahead of a key government cattle feedlot report.

On Thursday, the U.S. Department of Agriculture is expected to report that the country had 2.5% more cattle in feedlots as of June 1 than a year earlier, according to a Reuters poll of analysts. They estimated that May placements of cattle into feedlots would be down 5.5% from a year earlier while May marketings were seen down 10.6%.

Feeder cattle futures firmed, shrugging off pressure from strength in Chicago Board of Trade corn futures Cv1 and higher crude oil CLc1 prices.

The thinly traded CME June live cattle LCM26 contract ticked up, but the most-active August LCQ26 contract and deferred months turned lower on pressure from strength in corn Cv1 and crude oil futures, traders said. Higher feed and fuel-related transportation costs can add to higher beef prices, traders said.

Oil prices rose more than 1% on Wednesday after U.S. President Donald Trump said the new ceasefire agreement with Iran was not final and the Iran war could resume if he is unsatisfied. Concerns over excess supply next year, however, limited the gains.

While trade has been limited in cash cattle markets this week, asking prices in Texas had jumped $2 from the previous week to about $260 to $262 per hundredweight (cwt), said Dax Wedemeyer, a broker and grains analyst with US Commodities in West Des Moines, Iowa.

"Between that and the market trying to prepare for the Cattle on Feed report tomorrow, you're seeing a lot of adjusting happening right now," Wedemeyer added.

CME June live cattle futures LCM26 settled 0.425 cent higher at 255.725 cents per pound while benchmark August LCQ26 live cattle ended 0.35 cent lower at 248.85 cents.

CME August feeder cattle FCQ26 futures closed 0.55 cent higher at 367.425 cents per pound.

Hog futures were mixed, with the nearby July lean hog LHN26 contract turning lower as wholesale pork prices continued to soften on sluggish consumer demand. The USDA priced pork carcasses Wednesday morning at $95.05 per cwt, down 52 cents from Tuesday.

CME July lean hog futures LHN26 settled down 0.15 cent at 94.65 cents per pound while most-active August LHQ26 hogs ended up 1.45 cents at 96.5 cents.