Chicago | Reuters — Chicago Mercantile Exchange cattle futures rose on Thursday as technical buyers stepped into the market after prices weakened earlier in the session.
Traders said the massive supplies reported by the U.S. Agriculture Department have been priced in and speculators were likely to buy any dip in the market at current levels.
Live cattle contracts touched a five-week low on Wednesday, while feeder cattle contracts were trending near 2-1/2-month lows.
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Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
Hog futures also were firm, with traders calling the market oversold after sinking to their lowest since Sept. 6 on Wednesday.
CME December live cattle futures settled up 0.825 cent at 187.8 cents/lb. (all figures US$). The contract found technical support at its 50-day moving average. It then broke through its 40-day moving average before hitting resistance at its 30-day moving average.
November feeder cattle futures settled up 1.575 cents at 253.575 cents/lb., finding support at its 10-day moving average, while January feeders finished up 1.175 cents at 254.475 cents.
CME lean hog futures edged higher, snapping a three-session losing streak. Benchmark CME December hogs gained 0.125 cent to settle at 70.1 cents/lb.
— Reporting for Reuters by Mark Weinraub in Chicago.
