Chicago | Reuters — Chicago Mercantile Exchange live cattle contracts rose on Tuesday and the front-month contract hit its highest in more than seven years on strength in the cash market, traders said.
Hog futures were also firm, with chart-based buying after contracts broke through key technical resistance points on Monday.
CME December lean hog futures rose 1.525 cents to settle at 86.475 cents/lb., peaking at their highest since Sept. 22 during the session (all figures US$). The contract found technical support at its 200-day moving average.
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Hog futures have risen in four of the last five sessions.
The average pork packer margin rose by $3.65, to $19.20 per head, on Tuesday, according to livestock marketing advisory service HedgersEdge.com LLC.
CME December live cattle gained a cent to 149.775 cents/lb, rising above its 40-day and 50-day moving averages.
Spot October live cattle contract gained 0.6 cent, to 148.475 cents/lb. The contract peaked at 148.5 cents, the highest on a continuous basis for the front-month contract since Aug. 2015.
In the U.S. wholesale beef market, choice cuts rose $2.64, to $250.78 per hundredweight (cwt). Select cuts were $1.67 higher at $221.28/cwt, according to the U.S. Department of Agriculture.
CME November feeder cattle ended up 1.425 cent at 177.825 cents/lb.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
