* Firm beef quotes lift CME live cattle
* Feeders follow live cattle higher
By Theopolis Waters
CHICAGO, Aug 6 (Reuters) - Chicago Mercantile Exchange hog
futures on Tuesday rose for the fifth straight session
helped by higher prices for cash hogs and wholesale pork,
traders and analysts said.
U.S. Department of Agriculture data showed the average hog
price Tuesday afternoon at the closely-watched Iowa/Minnesota
market at $100.61 per hundredweight (cwt), up 85 cents from
USDA reported the wholesale pork price on Tuesday at $105.35
per cwt, up 79 cents from Monday. The higher price was due toy
higher prices for pork bellies, which are processed into bacon.
Packers are buying hogs for this week's slaughter.
Processors who were closed on Monday for a floater holiday will
make up the downtime on Saturday.
Pork demand received an added boost from cooler-than-usual
summer weather in parts of the country, which has been conducive
for outdoor barbecues.
Nearby hog futures' discount to CME's hog index, which was
at 100.68 cents, encouraged buyers. However, spot-August hog
futures moved to a contract high of 101.00 cents in after-hours
Spot August hogs closed at 100.550 cents per lb, or
up 0.325 cent. Most-actively traded October ended at
86.450 cents, up 0.950 cent.
BEEF PRICES LIFT LIVE CATTLE
CME live cattle gained modestly in reaction to an upturn in
cash beef prices on Tuesday, traders and analysts said.
USDA on Tuesday afternoon quoted the wholesale price of
choice beef at $187.17 per cwt, up 71 cents from Monday. Select
cuts rose 36 cents to $180.90.
"The higher beef quote was supportive. But a two to three
day uptrend is needed to confirm beef prices have bottomed out,"
a trader said.
Futures' gains could underpin cash cattle prices for this
week, the trader said. But packers will be leery about
aggressively bidding for supplies given their tighter margins,
No cash cattle bids or asking prices were reported by
Last week, cash cattle in Texas moved at $119 per cwt and at
mostly $119 in Kansas, with a few at $120, said feedlot sources.
Much of the Nebraska cattle fetched $120.50 then.
August live cattle futures closed up 0.375 cent at
120.925 cents per lb and October closed at 124.675
cents, up 0.125 cent.
Firm live cattle futures lifted CME feeder cattle.
August feeders closed at 154.250 cents, up 0.275
cent per lb, while September closed at 157.650 cents, up
(Editing by Bob Burgdorfer)