CHICAGO (Dow Jones)--Further broader-market advances and recovering fundamentals landed Chicago Mercantile Exchange hogs Monday on solid ground for a second straight session.

Hog traders were initially motivated by wholesale pork prices that Friday strung together two consecutive up days. Packers also kicked off the week with steady-to-higher cash hog bids.

Spot-June's Relative Strength Index reading of 29% enticed bullish traders before the spot month expired at 1 p.m. EDT. A contract's RSI of 30% or less means it has become oversold and subject to an upward adjustment.

Prospective bulls were also taken with nearby-July's close price proximity to CME's lean hog index.

Upward front-month momentum hoisted July over its 10-day moving average resistance obstruction. August also punched through 10- and 100-day moving average resistance obstacles.

Meanwhile, the Dow Jones Industrial Average's run up, which was driven by global economic optimism that lured investors away from the dollar, emboldened far hog month traders.

Hog market participants said stronger consumer confidence in the economy, along with the weakening dollar, could improve domestic and foreign sales of expensive pork items.

Spreading into July out of August and December was the most popular play during the session. Spreads involve trading two or more contracts at the same time while taking advantage of the price differences between them.

Spot-June hogs settled up 0.15 cent a pound, or 0.2%, at 77.92 after spot-month expiration.

July, the new lead contract, finished 1.50 cents higher, or 1.9%, at 80.05 cents. August ended up 1.42 cents, or 1.8%, at 81.77 cents.

July CME pork bellies closed 1.30 cents higher, or 1.4%, at 97.25 cents on buying in the adjacent lean hog pit. Technical purchasing also developed after July cracked the 100-day moving average resistance barrier.

Other belly months were unquoted.

CME's weekly belly storage report will be released after 5 p.m. EDT Tuesday.

Cattle Complex

Live cattle at the CME finished in positive trading territory on short-covering and Friday's stout equities-sector performance that spilled over into Monday.

Speculative live-cattle buyers were eager to purchase June and August because of both months' ongoing price discounts compared with last week's cash cattle results.

Cash-basis cattle a week ago moved at mostly $92.50 to $93 per hundredweight, compared with $94 to $95.40 the previous week.

Confidence in the world's financial health recovering further also energized bullish cattle traders because of the prospect of increased movement of high-end beef cuts.

June and August tripped pre-established buy orders after both months eclipsed Friday's highs. August received additional backing from spreading into that month out of June. Other traders sold August and landed in October on spreads.

However, front months finished beneath morning highs after encountering 10-day moving average technical resistance. Live cattle traders also responded in kind to the stock market's slip from earlier tops.

Spot-June live cattle closed up 0.27 cent a pound, or 0.3%, at 89.77 cents. Most actively traded August finished up 0.85 cent, or 1.0%, at 88.12 cents.

Floor-traded CME feeder cattle settled firm on short-covering and live cattle's rally. Traders also responded favorably to the exchange's rising feeder cattle index.

Spot-August closed up 0.35 cent, or 0.3%, at 110.42 cents. Most actively traded September ended up 0.57 cent, or 0.5%, at 110.42 cents.


-By Theopolis Waters; Dow Jones Newswires; 312-347-4965; theopolis.waters@dowjones.com