CHICAGO, July 20 (Reuters) - Chicago Mercantile Exchange
lean hog futures gained on Tuesday on short covering and
continued firmness in the wholesale pork market, traders said.
"August seems like its anchored by whats going on in the
cutout," said Altin Kalo, economist at Steiner Consulting Group.
"Theyve been surprised by the strength in the pork cutout."
CME August lean hog futures gained 0.525 cent to 105
cents per pound, while October firmed 1.650 cents to
Slaughter is expected to increase as supplies of
market-ready hogs increase moving into the fall, Kalo said.
Daily hog slaughter increased to 474,000 head on Tuesday, up
2.16% versus the week prior, the USDA said.
Slim supply has kept the CME's lean hog index, a
two-day weighted average of cash prices, firm, climbing to
$112.26 per cwt, its highest since June 28.
"Youve got the combination of lower hog kills and lower
weights, that has reduced supply availability on the spot
market," said Kalo.
Meanwhile, CME live cattle futures followed wholesale beef
prices lower, while feeder cattle were pressured by climbing
CME's most-active October live cattle futures fell
0.400 cent to 124.700 cents per pound, ending the session just
above its 100-day moving average, while nearby August futures
lost 0.475 cent to 119.775 cents.
"Were seeing a decline in beef prices across the board, at
the wholesale level, and so theres nothing there to be excited
about," said Kalo.
Boxed beef prices were mostly lower, with choice cuts
falling $1.43 to $265.06 per cwt and choice cuts adding 2 cents
to $249.51 per cwt, the USDA said. <BEEF-US-CH>, <BEEF-US-SE>
CME August feeder cattle finished 1.85 cents lower at
155.525 cents per pound.
(Reporting by Christopher Walljasper; editing by Richard