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LIVESTOCK-Hog futures surge on technical bounce, cattle firms
September 15, 2017 / 10:04 PM / 10 days ago

LIVESTOCK-Hog futures surge on technical bounce, cattle firms

    By Michael Hirtzer
    CHICAGO, Sept 15 (Reuters) - Chicago Mercantile Exchange
lean hog futures         surged more than 3 percent on Friday
while live cattle         gained about 1 percent, lifted by
chart-based and investment fund buying, traders and analysts
said.
    Hog futures had tumbled to a roughly 11-month low on
Wednesday, before stabilizing on Thursday and then rising
sharply to finish the week.
    The most-active October hog futures contract        settled
up 1.950 cents at 60.975 cents per pound.
    "There's a lot of technical buying," Stewart-Peterson senior
market advisory Naomi Blohm said. 
    Declines in prices for cash hogs and wholesale pork, coupled
with abundant hog and meat supplies, had pressured hog futures
for most of the week. But people were beginning to focus on the
potential for tighter supplies later this year, she said.
    "A lot of the bigger (hog) weights have been factored in ...
and people are done trading it," Blohm added.
    The U.S. Department of Agriculture after the closing of
futures trading said wholesale pork prices were down $1.44 to
$77.76 per cwt, lowest since May.         
    Cash hog prices in the top Iowa and southern Minnesota
market were not reported by USDA due to "packer submission
problems," USDA said.         
    CME October live cattle        settled up 0.825 cent at
107.750 cents per pound, hitting upside resistance at their
200-day moving average and failing to surpass Thursday's roughly
two-week high of 108.900 cents.
    Investors still were awaiting trades in U.S. Plains cash
cattle markets, following sales of about $105 per cwt last week
and online auction deals on Wednesday of $104.75. Beef packers
late on Friday were bidding about $105 in Kansas and Texas, but
feedlots were holding out for more, a trader said.
    CME October feeder cattle        were 1.425 cents higher at
150.225 cents per pound, finishing just below their session and
1-1/2 month high of 150.500.
    Choice-grade wholesale beef prices were up 42 cents at
$191.42 per cwt and select cuts were down 87 cents at $185.85,
USDA said.           

 (Reporting by Michael Hirtzer; Editing by Jonathan Oatis)
  

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