CHICAGO, Oct 12 (Reuters) - Chicago Mercantile Exchange cattle futures rose on Thursday as technical buyers stepped into the market after prices weakened earlier in the session.
Traders said that the massive supplies reported by the U.S. Agriculture Department have been priced in and speculators were likely to buy any dip in the market at current levels.
Live cattle contracts hit a five-week low on Wednesday, while feeder cattle contracts were trending near 2-1/2-month lows.
Hog futures also were firm, with traders calling the market oversold after sinking to their lowest since Sept. 6 on Wednesday.
CME December live cattle futures settled up 0.825 cent at 187.8 cents per pound. The contract found technical support at its 50-day moving average. It then broke through its 40-day moving average before hitting resistance at its 30-day moving average.
November feeder cattle futures settled up 1.575 cents at 253.575 cents per pound, finding support at its 10-day moving average, while January feeders finished up 1.175 cents at 254.475 cents.
CME lean hog futures edged higher, snapping a three-session losing streak. Benchmark CME December hogs gained 0.125 cent to settle at 70.1 cents per pound. (Reporting by Mark Weinraub; Editing by Shinjini Ganguli)
