CHICAGO (Dow Jones)--Chicago Mercantile Exchange hogs could open mostly firm Tuesday on late-Monday's $2.59 per hundredweight pork cutout rebound that pumped up pork packer profit margins, said analsyts and brokers.

The Dow Jones packer margin index for Friday's operations was plus $8.06, compared with plus $1.38 the previous day.

Potential short covering might provide added futures support. And, October and December modest discounts to CME's hog index may attract prospective bullish traders.

By the same token, steady-to-weak cash hog price calls and nervousness about daily hog slaughter return near 430,000 head might stir selling into potential front-month hog rallies.

Monday was the last official day for the recent "Goldman roll" period. However, more roll activity is expected over the next few days due to October's sizable open interest.

The "Goldman roll" consists of funds shifting some of their October long positions into December in association with the S&P's GSCI.

October 50.50 10-day moving average serves as a level of support. The contract's 51.75 Sept. 10 low is a price resistance area.

December is poised to test 48.87 40-day moving average support. The contract's 48.48 10-day moving average is the next level of technical support.

December's 50.00 Sept. 9 high is a price resistance barrier.

CME bellies may start the morning mixed.

Possible leftover selling after Monday's down day and February's overbought chart condition are bearish market matters.

However, potential short covering and late-Monday's steady fresh belly price at $70 per hundredweight are bullish futures influences.

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

February's 86.55-cents Monday low is a price support floor. The contract's 86.03 100-day moving average is a key area of chart support.

February's 88.00 July 21 high is a price resistance threshold.

Cattle Complex

Analysts and brokers anticipate CME live cattle unevenness at the start.

Negative market issues include possible spillover from futures' weakness on Monday and front-month premiums to last week cash cattle results.

Cash-basis fed cattle last week moved at $83 to primarily $85 per hundredweight versus the bulk of fed cattle the week before that sold for $85.

And, tight beef packer profit margins could restrict how much packers spend for supplies this week.

The latest operating margin index for beef packers was plus $13.10 per head, compared with plus $9.25 the previous day, as calculated by HedgersEdge.com.

By the same token, possible periodic short covering and late-Monday's boxed beef price hike are positive market factors.

The USDA's Monday evening boxed beef item showed choice items jumped $0.84 per hundredweight, and select cuts rose $0.75.

And speculative buyers may be drawn to December's oversold Relative Strength Index chart condition.

The final day for the recent S&P GSCI roll phase was Monday. Nonetheless, cleanup roll business is anticipated into later this week due to October's relatively large open interest.

October's 86.91-cents 10-day moving average is a support floor. The contract's 87.55 20-day moving average is a resistance ceiling.

December's 86.15 Sept. 1 low is a price support point. The contract's 86.84 10-day moving average is a resistance mark.

Feeder cattle may begin the morning mostly weak on carryover futures' declines from Monday and spot-September selling ahead of its Sept. 24 expiration.

Back-month contracts' premiums to CME's feeder cattle index and overnight-Chicago Board of Trade corn firmness are additional bearish feeder cattle market factors.

However, potential short covering and front-months trading nearly inline with CME's feeder cattle index might become positive market influences.

September's 98.67-cents 10-day moving average serves as a support area. The contract's 99.39 20-day moving average is a resistance level.

October's 98.71 10-day moving average is an support floor. The contract's 99.43 20-day moving average is a resistance ceiling.

(To access the daily livestock market data recap report, keyword search for "Livestock Market Fundamental Data Recap.")


-By Theopolis Waters; Dow Jones Newswires; 312-341-5778; theopolis.waters@dowjones.com