Cattle Futures - Funds, Stops, Charts Boosts Hogs
US - The Chicago Mercantile Exchange lean hogs closed higher on fund buying and buy stops after front-months cleared prime technical resistance levels. Generally positive fundamental factors contributed to advances. Pork bellies closed mostly weak. Meanwhile, live cattle contracts settled in negative territory while feeders ended mostly firm.Live cattle opened in line with Tuesday's mixed settlement but soon inched upward prodded by boxed beef gains, June's price discount relative to this week's cash ideas and initial Chicago Board of Trade corn weakness.
However, buying abated after June pierced subsequent 40-day moving average resistance and CBOT corn briefly floated up from overnight lows. Live cattle contracts then vacillated for the remainder of the session and at times mimicked directionless CBOT feedgrains.
Nonetheless, the prospect of steady cash business this week, impressive calculated packer profit margins and midday boxed beef's strong showing are again viewed as positive influences for Thursday's live cattle trade.
Source: FXSTREET