CME live cattle futures rise with cash price hopes

Nov 12 (Reuters) - CME live cattle futures gained modestly
on Tuesday in anticipation of at least steady cash prices this
week, traders said.
    * They said tighter cattle supply expectations in the months
ahead encouraged deferred-month live cattle buying.
    * Funds that follow the Standard & Poor's Goldman Sachs
Commodity Index (S&PGSCI) will shift, or roll their CME live
cattle and hogs December long positions into February and April.
Tuesday is the fourth of five days for the process.
    LIVE CATTLE - At 8:44 a.m. CST (1444 GMT), December 
was up 0.175 cent at 132.925 cents per lb. February was
at 134.600 cents, 0.225 cent higher. * There were no cash bids or asking prices reported by feedlot sources. Last week, cash-basis cattle in the U.S. Plains moved at mostly $131 per cwt. * Some packers may be caught short of supplies and forced to raise cash bids, an analyst said. * Wholesale beef demand could pick up as supermarkets look to feature beef after the U.S. Thanksgiving Day holiday on Nov. 28, he said. * Market bears contend packers might resist hiking cash bids, given their poor operating margins. * FEEDER CATTLE - November rose 0.350 cent to 164.550 cents per lb, while January was at 164.625 cents, 0.450 cent higher. * Short-covering and modest live cattle market advances lifted CME feeder cattle. LEAN HOGS - December was at 88.250 cents per lb, up 0.200 cent, while February was up 0.075 cent at 92.300 cents. * CME hogs inched upward in anticipation of steady cash hog prices on Tuesday, traders and analysts said. * Processors will need supplies for this week's production, a trader said. Some packers will ramp up Saturday's slaughter to make up for downtime during the U.S. Veteran's Day holiday on Monday, he said. * Continued worries about the spread of the Porcine Epidemic Diarrhea virus, which is fatal to baby pigs, reducing hog
production next year underpinned hog futures. (Reporting by Theopolis Waters in Chicago; Editing by Jeffrey Benkoe)

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