CHICAGO, June 17 (Reuters) - Chicago Mercantile Exchange live cattle futures closed stronger on Friday on rising cash prices, while lean hog futures hit two-week highs, analysts said.
Feeder cattle futures also ended firmer.
The markets advanced as U.S. stocks bounced back from a sharp selloff in the prior session. Losses in equities and concerns about red-hot U.S. inflation weighed on cattle futures earlier this week.
Cash cattle prices stayed strong, after trading to $140 per cwt on Thursday in Kansas and Texas, traders said. That was up as much as $4 from last week and the start of this week, they said.
“With cash leading, it gives us a recent little boost of support,” said Matt Wiegand, commodity broker for FuturesOne.
Most-active August live cattle futures rose 0.275 cent to 136.575 cents per pound. October cattle ended up 0.350 cent at 142.425 cents and touched its highest price since June 9.
CME August feeder cattle strengthened by 1.650 cents to settle at 172.950 cents per pound.
Traders adjusted positions ahead of the weekend, as CME livestock markets will be closed during Monday’s day session for the Juneteenth holiday, brokers said. Next Friday, the U.S. Department of Agriculture will issue a monthly Cattle on Feed report.
Beef processors slaughtered an estimated 124,000 cattle on Friday, up from 118,000 head a year earlier, the USDA said. Pork processors slaughtered an estimated 458,000 hogs, down from 467,000 hogs a year ago.
Packers’ profit margins declined to $154.05 per head of cattle from $222.30 per head a week ago and to $26.45 per hog from $33 per hog a week earlier, said livestock marketing advisory service HedgersEdge.com.
CME July lean hog futures rose 1.425 cents to close at 111 cents per pound, while most-active August hogs jumped 1.850 cents to 107.875 cents per pound. (Reporting by Tom Polansek in Chicago; Editing by Shinjini Ganguli)
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