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LIVESTOCK-Cash, pork prices send CME hog futures higher
October 3, 2017 / 8:24 PM / 2 months ago

LIVESTOCK-Cash, pork prices send CME hog futures higher

    * Live cattle reverse Monday's losses
    * Feeder cattle finish sharply higher

    By Theopolis Waters
    CHICAGO, Oct 3 (Reuters) - Chicago Mercantile Exchange lean
hog futures        gained for a second day in a row on Tuesday,
strengthened by upward-trending prices for market-ready, or
cash, hogs and the morning's firmer wholesale pork values, said
traders.
    They said October futures led advances after investors
actively bought that contract and simultaneously sold deferred
months, they said.
    October         hogs, which will expire on Oct. 13, ended
2.625 cents per pound higher at 59.875 cents, and above the
20-day moving average at 58.730 cents. Most actively traded
December         finished up 0.100 cent to 62.075 cents.
    Some packers bought hogs to round out inventories heading
into the second half of the week, while a few others raised cash
bids to divert Midwest farmers' focus from harvesting crops,
traders and analysts said.         
    The cash market tends to find some strength when farmers
conduct fieldwork during the spring and fall, said Midwest
Marketing Solutions analyst Brian Hoops.
    "There has been a lot of producers, up until this rain
event, that have been very busy trying to combine corn and
soybeans," he said.
    Wholesale pork values garnered periodic support from grocers
that are featuring product during National Pork Month in
October.         

    LIVE CATTLE RALLIES     
    Short-covering, sparked by Tuesday morning's higher
wholesale beef values, rallied CME live cattle from Monday's
lows, said traders.
    They said fund buying furthered market advances, despite 
possibly steady-to-lower cash prices this week.
    October         live cattle finished 1.275 cents per pound
higher at 109.100 cents, and above the 200-day moving average of
108.932 cents. December         closed 1.475 cents higher at
114.900 cents, and over the 100-day moving average of 114.552
cents.
    Market participants await Wednesday's Fed Cattle Exchange
(FCE) sale of more than 1,700 animals to set the pace for this
week's cash cattle prices. The FCE reported no sales last week. 
    A week ago, most of the cash cattle in the U.S. Plains
brought $108 per cwt.
    Market bulls cited extremely profitable margins and the
uptick in wholesale beef prices as incentives for packers to pay
up for supplies this week.                  
    Contrarians point to 15,000 more cattle for sale than last
week and availability of animals contracted against the futures
market for potential cash price pressure.
    Feeder cattle futures at the exchange snapped back from
Monday's selloff helped by short-covering, fund buying and live
cattle futures' turnaround.
   October         ended 2.075 cents per pound higher at 152.425
cents.

 (Reporting by Theopolis Waters; Editing by James Dalgleish)
  

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