CME live cattle futures move higher; hogs extend losses

CHICAGO - Chicago Mercantile Exchange live cattle future's gains on Monday carried over into Tuesday, with support from technical buying, traders said.

• At 8:48 a.m. CDT (1348 GMT), June live cattle, which will expire on Thursday, was up 0.350 cent to 116.275 cents per lb, and August was 0.750 cent higher at 112.775 cents.
• Both contracts opened above their respective 10-day moving average of 115.99 and 112.22 cents.
• Investors await the sale of market-ready, or cash, cattle by Friday.
• Bullish investors point to future's recent rally, highly-profitable packer margins and almost 22,000 fewer cattle for sale than last week as supportive cash price factors.
• Market bears believe sluggish wholesale beef demand and packers buying cattle for the Fourth of July holiday-shortened workweek will pressure cash returns.
• Last week, the bulk of market-ready, or cash, cattle in the U.S. Plains moved at $116 to $117 per cwt.
• The afternoon wholesale choice beef price on Monday tumbled $3.26 per cwt to $210.60 from Friday. Select sagged 44 cents to $197.39, according to the U.S. Department of Agriculture.
• Profitable margins encouraged packers to ramped up slaughter rates, which weighed on wholesale beef values, an analyst said.

FEEDER CATTLE - August was up 0.375 cent per lb to 140.550 cents, on live cattle market advances and as much as $7 per cwt higher cash feeder cattle prices.
 

LEAN HOGS - July lean hogs was down 0.200 cent per lb to 82.950 cents, and August was 0.175 cent per lb lower at 83.325.

• CME lean hogs eased for a sixth straight session, weakened by Monday's soft cash and wholesale pork prices, traders said.
• Government data showed the Monday afternoon average cash hog price in Iowa/Minnesota at $82.11 per cwt, 59 cents lower than on Friday.
• The afternoon wholesale pork price on Monday slipped 27 cents per cwt from Friday to $89.00, the USDA said.
• Processors cut cash bids ahead of plant closures for Monday's holiday, while grocers have nearly all the pork they need to feature for holiday grilling demand, a trader said.