July 6, 2017 / 9:23 PM / 3 months ago

LIVESTOCK-U.S. cattle rise in rebound on technical buying, cash trades

    By Michael Hirtzer
    CHICAGO, July 6 (Reuters) - U.S. live cattle futures        
gained more than 1 percent on Thursday, rebounding from a
two-month low on chart-based technical buying and slightly
firmer trades in cash cattle markets, traders said.
    Most-active CME August live cattle        knocked out
Wednesday's session low early in Thursday's session but found
downside support near its 100-day moving average and then
bounced higher. The contract settled up 1.400 cents at 114.950
cents per pound, the biggest daily gains in 1-1/2 weeks.
    Cattle futures declined for most of June and some investors
were bargain hunting, traders said.
    Cash cattle traded lightly at $117 in Kansas and $118 in
Nebraska, feedlot sources said. That was flat to down $2 from
last week and the high end of those trades was seen as a modest
improvement from average sales of $117.70 per cwt on Wednesday
at the online Fed Cattle Exchange (FCE) auction.
    "The FCE didn't trade much at all yesterday, and what little
was done was at $117; $118 is better and August (futures) are
cheap," Brugler Marketing and Management President Alan Brugler
said by telephone.
    CME August feeder cattle futures        finished 2.400 cents
higher at 144.625 cents per pound.
    CME lean hog futures         were flat to widely mixed as
investors continued to build positions in deferred contract
months or roll out of nearby contracts. Most-active August hog
futures        fell 1.925 cents to 82.650 cents per pound as
traders locked in profits after the contract hit a lifetime high
on Wednesday.
    CME July hog futures        were down 0.575 cent to 91.475
cents per pound, and the contract was nearly at parity with the
CME index of the cash hog market        of 91.930 cents per
pound.
    The lean hog index traded at a premium to futures for weeks,
prompting investors to buy July hog futures in anticipation that
futures would eventually converge with the higher cash sales.
    The U.S. Department of Agriculture said prices for hogs in
the top market of Iowa and southern Minnesota were up 30 cents
to $87.77 per cwt.         
    Prices for wholesale pork and beef both were lower,
according to the agency.                    

        

 (Reporting by Michael Hirtzer in Chicago; Editing by Dan
Grebler)
  

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