February hog futures rose half a cent, or 0.6%, to 86.27 cents a pound in trading at the Chicago Mercantile Exchange. CME April hog futures rose 0.52 cent, or 0.6%, to 87.92 cents a pound.

Hog futures dating back to last week are showing clear signs that investors think demand for pork has bottomed seasonally and will begin growing into the spring grilling season. Although similar expectations were met with disappointment this winter, due in large part to ample supplies and a holiday-related lull, the clear stability of wholesale markets for pork and hogs in recent weeks has drawn fresh investments.

Wholesale pork prices late Tuesday recorded a second straight daily gain, as they rose 48 cents a hundred pounds to $84.93.

Futures have drawn support as they have remained above some key technical levels, a sign bullish investors are providing a floor under the market. Many investors have been hoping to profit from a seasonal rebound in demand by matching new positions to the bottom of the cycle.

A key question for hog futures this year remains the eventual strength of exports, whose historically large volume in 2011 pushed pork prices to record highs. American pork fetches higher prices per pound overseas, which is one reason about a fifth of all U.S. pork ends up in foreign markets.

Cash hog prices were reported steady to 50 cents per hundredweight higher midweek on buying interest from some processors to fill their late-week slaughter schedules and secure additional supplies for next week.

Lighter average weights in Iowa and southern Minnesota last week suggest that slaughter-ready supplies are more current, or up to date, so some producers may not be as anxious to sell additional hogs this week. In addition, the peak in seasonal supplies was hit in late fall and early winter, which could force packers to compete more aggressively for the hogs that are available, said livestock dealers.

Projections for Saturday's slaughter now range from 140,000 to 150,000 head. If the weekend estimates are on target, the week's total is expected to be around 2.23 million, or up about 2.6% from a year ago.

The terminal markets traded steady, with top prices from $57 to $60 per hundredweight on a live basis.

The latest Dow Jones Newswires pork packer margin index was minus $1.56 per head, compared with minus $1.84 the previous day.

Cattle Complex

Live cattle futures finished mostly lower Wednesday due to a slide in wholesale beef prices and as traders took profits after two days of gains.

Cattle for February delivery closed down 0.3 cent, or 0.2%, to $1.2322 a pound in trading at the Chicago Mercantile Exchange. April cattle traded lower by 0.15 cent, or 0.1%, to $1.2665 a pound.