Chicago | Reuters – Lean hog futures on the Chicago Mercantile Exchange gained as much as 1.7 percent on Monday, rising on technical buying and calendar spreading despite weaker prices for hogs in U.S. cash markets, traders said.
Live and feeder cattle futures each were narrowly mixed in spread trading amid a lack of fresh fundamental information in all three livestock markets.
CME December hogs notched the largest gains in livestock, settling up 0.925 cent at 58.850 cents per pound. Traders have been buying back positions in December hogs and rolling into deferred months, propping up the front-month contract. February hogs were up 0.525 cent to 66.900.
The December contract settled above its 200-day moving average for the first time in weeks on Friday, prompting further buying when trade resumed on Monday. But the contract could soon hit resistance near 60 cents – a price level that was the high watermark in a rally that ended on Oct. 1.
“I would think the December hogs would run out of steam around 60 cents … the cash market has been weak,” said DuWayne Bosse, president of brokerage Bolt Marketing LLC in South Dakota.
The CME Group’s index of the cash hog market sank to a one-month low of 64.61 cents per pound.
Cash prices in the top hog market of Iowa and southern Minnesota ticked up 48 cents to $58.41 per cwt, the U.S. Department of Agriculture said in data issued after the close of trading.
Front-month CME October live cattle settled up 0.425 cents to 114.300 cents per pound while most-active December cattle were off 1.150 cents to 117.250 cents.
November feeder cattle were down 0.900 cent to 153.900 cents and January feeders up 0.125 to 149.825.
Cash cattle in Kansas and Texas late on Friday sold at better-than-expected prices of $113 to $115 per cwt, up from recent sales of $111, feedlot sources said.
Choice-grade wholesale beef was up 29 cents to $213.76 per cwt, USDA said on Monday.