May 6 (Reuters) – Chicago Mercantile Exchange live cattle turned moderately higher on Tuesday, supported by short-covering and futures’ discount to last week’s cash prices, traders said.
* Uncertainty about market-ready, or cash, cattle prices for this week limited advances, they said.
* At 8:44 a.m. CDT (1344 GMT), June was up 0.250 cent per lb to 137.775 cents, and August rose 0.125 cent to 137.375 cents.
* CME live cattle could trade sideways while waiting for cattle in the cash market to change hands, an analyst said.
* More cattle up for sale and slim packer margins might keep a lid on cash prices, he said.
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* Anticipation of increased wholesale beef demand, as grocers prep for spring grilling advertisements, might underpin cash returns, the analyst said.
* Last week, cash cattle in Texas and Kansas moved at $146 per cwt, with $147 to $150 sales in Nebraska, said feedlot sources.
* FEEDER CATTLE – May was at 183.400 cents, up 0.750 cent per lb, and August was 1.050 cents higher at 190.850.
* Firm CME live cattle futures and weak corn prices boosted feeder cattle contracts.
* Firm prices for feeder cattle in local markets provided more support to futures.
* LEAN HOGS – May lean hogs were at 116.650 cents per lb, down 0.250 cent. Most actively traded June was up 1.350 cents at 123.700 cents, and July climbed 1.325 cents to 123.300 cents.
* CME hogs traded mostly higher, driven by Monday’s cash and wholesale pork price gains, traders said.
* Some packers need hogs for the rest of this week’s production, said traders.
* Supermarkets are buying pork as warmer weather heats up demand for cooking outdoors, an analyst said.
* Fund buying sent June and July futures higher, said traders.
* They said the thinly-traded May contract lagged due to its premium to CME’s hog index, which was at 114.53 cents. (Reporting by Theopolis Waters in Chicago; Editing by Meredith Mazzilli)
