CHICAGO — Chicago Board of Trade hog and cattle futures rose on Wednesday, following gains made in the cash market earlier this week, traders said.
CME December lean hog futures gained 0.9 cent to settle at 87.375 cents per lb. The contract faced technical resistance at the high end of its 20-day Bollinger range.
Hog futures have risen in five of the last six sessions, with expectations that pork export demand will remain strong adding support to the market.
The average pork packer margin dropped to $4.95 from $19.20 per head on Wednesday, according to livestock marketing advisory service HedgersEdge.com LLC.
CME December live cattle rose 1.575 cents to 151.35 cents per lb, breaking through technical resistance at the high end of its 20-day Bollinger range and closing just below its session peak of 151.4 cents.
Spot October live cattle contract gained 0.875 cent to 149.35 cents per lb. The contract peaked at 149.4 cents, the highest on a continuous basis for the front-month contract since Aug. 12, 2015.
In the U.S. wholesale beef market, choice cuts rose $2.61 to $253.39 per hundredweight (cwt), up $2.61 from Tuesday afternoon. Select cuts gained 91 cents to $222.19 per cwt, according to the U.S. Department of Agriculture.
CME November feeder cattle ended up 0.25 cent at 178.075 cents per lb.
China will release 20,000 tonnes of frozen pork from its state reserves on Oct. 21, according to a notice from the reserves management center on Wednesday, following rising hog prices recently. (Reporting by Mark Weinraub; Editing by Vinay Dwivedi)