CHICAGO, July 13 (Reuters) - Chicago Mercantile exchange cattle futures extended gains on Wednesday on follow-through technical buying after rallying in the previous two sessions.
Tight supplies remained in focus as the front-month feeder cattle contract hit its highest on a continuous basis since November 2015.
“Big picture, the U.S. Agriculture Department still has sharply reduced beef production showing up in the fourth quarter of this year and then really decelerating into 2023,” brokerage StoneX said in a research note.
The most-active August live cattle futures gained 0.2 cent to settle at 136.875 cents per pound, peaking at its highest since June 17.
CME August feeder cattle gained 1.225 cents to close at 180.8 cents per pound.
August lean hogs settled 1.5 cents higher at 110.5 cents per pound, hitting its highest since April 19.
Strength in the cash prices supported hog futures. (Reporting by Mark Weinraub; Editing by Shailesh Kuber)
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