Chicago | Reuters — Chicago Mercantile Exchange (CME) hog futures rose on Monday, with the market underpinned by tight supplies and firm cash markets, traders said.
But technical selling kept the gains in check, with the front-month contract failing to take out the seven-year high it hit on Friday.
CME July lean hog futures added 1.5 cents, to 122.1 cents/lb. (all figures US$). The contract failed to hold support above the high end of its 20-day Bollinger range.
The pork cutout ended at $134.73/cwt, up $1.44 from Friday. The cutout value peaked at its highest since July 2014 earlier in the day.
Pork processors slaughtered 483,000 hogs on Monday, the U.S. Agriculture Department said.
Nearby August live cattle futures dropped 0.3 cent to close at 117.775 cents/lb. CME August feeder cattle closed 0.275 cents higher at 150.2 cents/lb.
Cattle slaughter was reported at 119,000 head on Monday, unchanged from Friday, according to a USDA report.
Wholesale beef prices stepped back, with select cuts falling $2.56, to $309.17/cwt, while choice cuts dropped 38 cents, to $338.60/cwt, according to USDA.
— Mark Weinraub is a Reuters commodities correspondent in Chicago.