* USDA quarterly hog report set for Friday
    * CME live cattle mostly higher as funds buy
    * Live cattle futures' climb pulls up feeders

    By Theopolis Waters
    CHICAGO, June 27 (Reuters) - Chicago Mercantile Exchange hog
futures climbed on Thursday as pork prices remained historically
high, traders and analysts said.
    Thursday morning's U.S. Department of Agriculture mandatory
wholesale pork price report, or cutout, calculated on a
plant-delivered basis, was at $110.78 per hundredweight (cwt).
    The price slipped from Wednesday's all-time high of $111.33
per cwt but stayed above the previous $110.19 record set on Aug.
	

		

			
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8, 2011.
    Pork values rose for four straight days largely due to
surging prices for pork bellies, which are processed into bacon,
analysts said. They said fast-food franchises, supermarkets and
restaurateurs competed for product at higher costs.
    "It's all about the bellies this time of year," independent
hog futures trader Bill Cipolla said.
    Pork gained favor with consumers after beef prices spiked to
record highs last month.
    Also, packers cut slaughter rates to offset
tighter-than-expected seasonal hog supplies. Those cutbacks
reduced the flow of pork to end-users at a time when demand
heats up for summer vacations and outdoor cookouts.
    Analysts see pork values peaking as grocers fill meat orders
for U.S. July 4 Independence Day holiday demand. In
anticipation, packers lowered bids for market-ready hogs.
    USDA data showed the average hog price on Thursday morning
in the most-watched Iowa/Minnesota market at $98.81 per cwt,
down 74 cents from Wednesday.
    Investors await the government's quarterly hog report on
Friday at 2 p.m. CDT (1900 GMT).
    Analysts expect the report to show the U.S. hog herd likely
grew slightly in the March-May quarter due to cheaper feed.
    
    CME July hogs settled up 2.025 cents per lb at
	

		

			
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101.975 cents. They posted a new contract high of 102.200 cents
in after-hours trading.
    August closed at 99.400 cents, or 1.750 cents higher
and peaked at its highest level in almost seven months.
   
    MOST LIVE CATTLE UP WITH FUNDS
    Fund buying and short-covering before the last trading day
of the quarter landed most CME live cattle in positive
territory, analysts and traders said.
    Spread traders sold spot June and bought deferred futures
before the spot month expires on Friday. The spreads lifted
August beyond the 100-day moving average of 122.49 cents, which
triggered fund buying.
    Spot June settled down 0.125 cent per lb at 121.150
cents. 
    Most-actively traded August closed 0.750 cent higher
at 122.925 cents. October finished at 126.175 cents, or
0.775 cent higher.
    Investors waited for this week's cash cattle trade.
    Cash bids in Texas and Kansas stood at $117 per
hundredweight, with no asking prices reported by feedlot
sources. Cash cattle last week moved at $120 per cwt.
    Thursday morning's beef cutout rebound and fewer cattle for
sale were supportive for cash.
    The government's Thursday morning data showed the wholesale
price of choice beef, or cutout, at $197.59 per cwt, $1.08
higher than on Wednesday. Select cuts rose 97 cents to $187.48.
    But packing plants will be closed at least one day over the
	

		

			
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July 4 holiday period, limiting their need for supplies.
    Higher CME live cattle and fund buying pushed feeder cattle
futures to a 5-1/2-month high.
    August settled up 0.775 cent per lb at 149.700
cents. September was at 151.825 cents, 0.800 cent
higher.

 (Reporting by Theopolis Waters; Editing by Dale Hudson)