LIVESTOCK-Cattle futures extend winning streak; big supplies hinder hog market
CHICAGO, Aug 3 (Reuters) - U.S. live cattle futures firmed on Monday, with fund buying sparking the gains due to expected strength in the cash markets, traders said.
"The trade continues to feel that the cash market has bottomed," said Don Roose, "It continues to feel that the cash market will trade from $1 to $2 higher this week."
The front-month Chicago Mercantile Exchange live cattle futures contract has risen for five straight sessions, its longest stretch of higher closes since March. But the daily gains have been modest and the front-month contract has risen just 2.5% during the streak.
CME August live cattle futures settled up 0.2 cent at 103.025 cents per pound. Most-active October rose 0.4 cent to close at 108.275 cents a pound, peaking at 108.45 cents, its highest since March 6.
Benchmark September feeders rose 0.85 cent to 147.075 cents per pound.
CME October lean hog futures settled down 1.225 cents at 44.4 cents per pound.
Hog futures suffered from a glut of supplies on the market, as expected euthanizations during the spring never reached the 7.5 million initially forecast, Roose said.
Meatpacker Tyson Foods Inc on Monday said the COVID-19 pandemic will increase operating costs and hinder sales volumes into next year. The company reported quarterly sales of $10.02 billion, down from $10.89 billion a year earlier. (Reporting by Mark Weinraub Editing by Marguerita Choy)
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