July 11, 2011 / 3:55 PM / 6 years ago

LIVESTOCK-Hogs up limit on talk China buys pork

2 Min Read

* Hogs up limit on talk China buys pork

* Cattle pulled higher by hogs.

By Bob Burgdorfer

CHICAGO, July 11 (Reuters) - U.S. hog futures rose the 3-cent daily limit early on Monday as new talk circulated that China bought a large amount of U.S. pork for delivery beginning in August and going into the autumn, said Chicago traders and cash dealers.

The quantity of the purchases was not available, but sources said the deal involved split carcasses.

China has been working hard to tame food inflation and that has included importing food. In 2011 through April, China has bought nearly 107 million lbs of pork, up from 3.6 million a year earlier.

"It's all China and that it's (shipments) going to start at the beginning of August," a Chicago trader said of the higher futures.

While new pork sales to China could not be confirmed, some cash meat sources said pork markets were busier than expected on Monday with pork plants raising asking prices.

At 10:45 a.m. CDT (1545 GMT), CME July hogs LHN1 up 0.525 cent at 96.425 cents per lb, August LHQ1 up 3.000 cents at 99.175 cents and October LHV1 up 3.00 cents at 92.750.

Cattle futures rose with hogs, despite outside pressures from lower outside markets, such as equities and crude oil.

Cash beef and cattle prices were higher last week, pushed up by supermarkets restocking after a busy three-day holiday weekend. But, traders have been worried that sales will slow in the weeks ahead hot summer weather spreads across the country.

CME August cattle LCQ1 were up 0.675 cent at 115.325 cents per lb and October LCV1 up 0.725 cent at 120.925 cents

Feeder cattle advanced with live cattle and lower corn futures.

August feeders FCQ1 up 0.225 cent at 143.825 cents per lb and September FCU1 unchanged at 144.40 cents. (Reporting by Bob Burgdorfer; Editing by Marguerita Choy)

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