By Tom Polansek
CHICAGO, Feb 24 (Reuters) - Chicago Mercantile Exchange lean hog futures jumped to a two-week high on fund buying on Tuesday, as the market continued to recover from a recent setback, traders said.
Firm prices in the cash market helped to support gains.
CME April hogs (LHJ26) closed up 2.1 cents at 95.800 cents per pound, with the contract rebounding after pulling back from a high of 99.800 cents reached on February 4.
“There’s a lot of money flow going around there,” said Austin Schroeder, analyst for Brugler Marketing and Management. “You’ve seen a little bit of cash strength recently.”
The U.S. Department of Agriculture on Monday quoted the wholesale pork carcass cutout at $97.40 per hundredweight, up $1.79. After futures trading ended on Tuesday, the agency said in a monthly report that frozen U.S. pork supplies on January 31 were up 6% from the previous month and up 1% from a year earlier. Frozen stocks of pork bellies were up 16% from a month earlier and up 3% from last year.
The USDA also reported that total pounds of beef in freezers on January 31 were up slightly from the previous month but down 4% from last year.
Nationwide, cattle inventories dwindled to a 75-year low as high cattle prices and a persistent drought drove ranchers to send more animals to slaughter, instead of keeping them for breeding. Meatpackers were losing an estimated $334.90 per head of cattle due to low supplies and high prices, according to livestock marketing advisory service HedgersEdge.
“From an overall fundamental standpoint, things are still tight and bullish,” Schroeder said.
CME April live cattle futures (LCJ26) slipped 0.15 cent to close at 239.100 cents per pound and touched their lowest price since February 11. April feeder cattle (FCJ26) rose 0.85 cent to finish at 362.200 cents per pound.

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LIVESTOCK-CME hog futures reach two-week high on fund buying