CHICAGO — Chicago Mercantile Exchange feeder cattle and live cattle futures rose on Tuesday amid technical buying, while lean hog futures finished mixed.
Both cattle markets have been due to rebound after recent selloffs dragged prices too low at a time when demand is solid, brokers said.
Live cattle futures topped a one-week high after hitting a four-month low on Friday.
“Fundamentally I think we had gotten too cheap across the board in cattle,” said Ted Seifried, chief market strategist for Zaner Ag Hedge Group.
Front-month CME October live cattle futures settled up 0.200 cent at 122.825 cents per pound. Deferred futures were higher, though the most-active December contract fell 0.200 cent to end at 127.850 cents. October and December contracts reached their highest prices since Sept. 27 during the session.
Most-active November feeder cattle ended up 1.850 cents at 156.875 cents per pound and also touched its highest price since Sept. 27.
Further advances in feeder cattle futures could signal higher prices are in store for live cattle, Seifried said.
“The feeders are the leaders,” he said. “If feeders can continue to recover, that gives us reason to think that maybe live cattle can.”
In the pork market, CME October lean hogs settled up 0.175 cent at 90.975 cents per pound. Most-active CME December lean hogs sagged 0.550 cent to end at 82.550 cents and touched a one-week low.
Hog futures had been technically overbought and will likely attempt to bounce back following a correction, traders said.
US wholesale pork cutout values, reported by the US Department of Agriculture, were weaker. The carcass value dropped by $4.27 to $108.13 per hundredweight (cwt) and ham values sank by $14.93 to $76.94 per cwt.
(Reporting by Tom Polansek in Chicago; Editing by Shinjini Ganguli)