CHICAGO, June 26 (Reuters) - Chicago Mercantile Exchange hog
futures finished higher on Tuesday after short-covering
and bargain buying reversed recent market losses amid trade
fears, analysts said.
Hog farmers in the United States may face another wave of
higher tariffs by China, which placed stiff retaliatory duties
on U.S. pork imports in early April.
CME hogs further benefited from their price value, or
discount, to the exchange's lean hog index for June 22 at 86.20
cents. The July contract gained traction after breaking through
100-day moving average resistance at 79.004 cents.
Still, bullish investors were skeptical that Tuesday's
advances would carry over into Wednesday as packers continue to
lower bids for slaughter-ready, or cash, hogs to improve their
margins.
The U.S. Department of Agriculture will issue its quarterly
hog report on Thursday.
July hogs ended 1.050 cents per pound higher at
79.125 cents. August closed 1.150 cents higher at 74.750
cents.
LIVE CATTLE FUTURES SETTLE WEAKER
CME live cattle posted modest losses amid softer
wholesale beef values and caution ahead of prices for
market-ready, or cash, cattle later this week, traders said.
Technical selling and consolidation before the end of the
quarter weighed on futures for most of the session, they said.
Market participants await the sale of 306 animals at
Wednesday's Fed Cattle Exchange auction. Cash cattle there last
week brought $110 per cwt.
Cash cattle elsewhere in the U.S. Plains sold from $108 to
$110 per cwt.
Bullish traders believe packers may pay about the same for
cattle as last week given their historically high margins and
fewer animals for sale.
Market bears cited a possible seasonal top in wholesale beef
values and the prospect of increased supplies in the coming
weeks.
Mechanical issues idled a beef packing plant in the Plains
on Monday and Tuesday, traders said. The facility may operate on
Wednesday and make up the downtime on Saturday, they said.
June live cattle closed down 0.050 cent per pound
at 105.925 cents, and below the 40-day moving average of 106.175
cents. August ended 0.475 cent lower at 102.425 cents.
Live cattle futures will resume the normal
3.000-cents-per-pound daily trading limit on Wednesday after
failing to settle up or down Tuesday's 4.500-cent expanded
limit.
Short-covering underpinned CME feeder cattle contracts.
August closed up 0.325 cent per pound at 146.100
cents.
(Reporting by Theopolis Waters
Editing by Leslie Adler)