LIVESTOCK-U.S. cattle, hog futures rise on strong cash markets
By Tom Polansek
CHICAGO, Oct 5 (Reuters) - U.S. live cattle and lean hog futures advanced on Monday on expectations that cash prices will remain firm, analysts said.
Cash cattle prices are expected to rise $1 to $2 per cwt this week as packers ramp up slaughtering, said Brian Hoops, president of broker Midwest Market Solutions. Fat cattle last week traded in the U.S. Plains at $107 per cwt, up about $2 from the previous week.
Meatpackers slaughtered an estimated 119,000 cattle on Monday, up from 118,000 a week ago and 118,000 a year earlier, according to the U.S. Department of Agriculture.
"They're going to have to pay up for the cash markets," Hoops said.
Chicago Mercantile Exchange October live cattle rose 0.650 cent to 108.825 cents per pound and most-active December ended up 0.650 cent at 111.750 cents.
CME November feeder cattle edged up 0.050 cent to 139.925 cents per pound.
CME October lean hogs settled up 0.250 cent at 74.750 cents per pound, while most-active December hogs rose 0.150 cent to 62.650 cents.
The CME's lean hog index, a two-day weighted average of cash markets, increased to $76.81 per cwt, it highest since August 2019 and up from $76.74 on Friday. The U.S. pork cutout, an indication of wholesale pork prices, was $2.85 higher at $95.00 per cwt.
"We're looking at cash markets for direction this week," Hoops said. (Reporting by Tom Polansek in Chicago)
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