By Theopolis Waters
CHICAGO, April 17 (Reuters) – Chicago Mercantile Exchange hog futures on Thursday finished higher on fund buying and short-covering ahead of the Easter holiday, traders said.
CME will be closed on Friday in observance of the Good Friday holiday.
Some investors bought the May and June contracts in anticipation of a post-Easter uptrend in cash hog and pork demand.
Government data showed the afternoon’s average price of hogs in the Iowa-Minnesota market up 50 cents per hundredweight from Wednesday to $115.69.
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Chicago cattle futures regained a ground on Monday to maintain a fairly level trajectory after last week’s fall.
Thursday morning, hogs in the Midwest moved $1 to $2 per cwt. lower, according to hog dealers.
Cash hog prices recently felt pressure as some packing plants plan to be closed on Friday and Monday for the holiday.
Processors had already curbed slaughter rates to offset tight supplies as the Porcine Epidemic Diarrhea virus reduced hogs available for slaughter.
Grocers are cautious about booking large amounts of meat until they determine how much product moved during the three-day holiday weekend.
Thursday afternoon’s wholesale pork price dropped $1.08 per cwt. from Wednesday to $120.08, the U.S. Department of Agriculture said.
Upward momentum in hog futures accelerated after nearby trading months broke through their 20-day moving resistance levels, touching off fund buying and buy stops.
May hogs finished up 0.625 cent per pound to 123.500 and above the 20-day moving average of 122.121 cents.
Most actively traded June ended at 124.825 cents, 1.050 cents higher, surpassing the 20-day moving average of 124.556 cents.
LIVE CATTLE FUTURES SAG
CME live cattle ended lower on profit-taking in response to more cash price losses, traders said.
On Thursday, cash cattle in Kansas traded at $147 per cwt, down $1 from last week, feedlot sources said. Sales of similar cattle in Nebraska brought $148, $2 lower than a week ago, they said.
Cash cattle on Wednesday in Texas moved at $147 per cwt, $1 lower compared with a last week.
Weaker cash cattle prices and the recent upswing in wholesale beef costs should help improve packer margins, traders and analysts said.
Thursday afternoon’s wholesale choice beef price jumped $2.13 per cwt from Wednesday to $225.88. Select cuts rose 96 cents to $215.43, based on USDA data.
Beef packer margins for Thursday were an estimated negative $108.35 per head, compared with a negative $116.75 on Wednesday and a negative $120.15 a week ago, as calculated by Colorado-based analytics firm HedgersEdge.com.
April live cattle closed down 1.550 cents per lb. to 144.200 cents, and June ended 1.250 cents lower at 134.375 cents.
April feeder cattle, which expired today, settled down 0.700 cent at 178.550 cents. It was nearly in line with the exchange’s feeder cattle index of 178.95 cents.
Remaining feeder cattle contracts felt pressure from selling in  live cattle futures and fund liquidation.
May feeder cattle finished 1.850 cents lower at 178.050 cents a lb., and August 1.575 cents lower at 181.400 cents.
