Chicago | Reuters — Chicago Mercantile Exchange lean hog futures rallied on Friday, extending gains made a day earlier when the market rebounded from a 10-month low.
The gains accelerated as prices surged through key resistance points, and the market closed near session highs.
CME February lean hogs settled up 3.2 cents at 81.025 cents/lb. (all figures US$). For the week, lean hogs dropped 0.6 per cent.
The contract rose above its 10-, 20-, 30-, 40- and 50-day moving averages during the session.
Long awaited signs of strength in pork prices added support to hogs.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
The wholesale pork carcass cutout value gained $4.86, to $91.82/cwt, on Friday, the highest since Nov. 15, according to U.S. Agriculture Department data. The cutout had fallen to its lowest since Feb. 3 earlier in the week.
Cattle futures were slightly higher on some end-of-week bargain buying after three straight days of losses.
CME February live cattle ended up 0.275 cent at 138.075 cents/lb. Live cattle posted a weekly decline of 0.6 per cent.
Technical support was noted at the contract’s 30-day moving average, but resistance was seen at its 20-day moving average.
January feeder cattle rose 0.8 cent to 164.875 cents/lb., while deferred contracts dropped.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.
