Chicago Mercantile Exchange lean hog futures were mostly lower on Monday, pressured by bear-spreading and big U.S. supplies that continued to weigh on cash markets, traders said.
Chicago Mercantile Exchange live cattle futures jumped their 3.000 cents daily price limit while feeder cattle also rose sharply as traders exited short positions on expectations for higher prices in cash cattle markets
Cash cattle prices lost another $2 per cwt. last week, a decline of $7 over two weeks. Coupled with higher input costs on feeder cattle, the decline feedyards with an average $22 per head loss last week.
U.S. lean hog futures surged about 4 percent on Tuesday, boosted by chart-based buying and stronger demand from pork packers, traders and analysts said.
Cattle feeding margins jumped $72 per head higher the week ending Jan. 25 as the value of feeder cattle calculated against those closeouts declined $8 per cwt.
