CHICAGO (Dow Jones)--Analysts and brokers anticipate a mostly firm Chicago Mercantile Exchange hog open Wednesday on follow-through buying after Tuesday's futures rally.

Tuesday evening's $2.51 per hundredweight pork cutout price bounce and steady-to-higher cash hog price calls are additional positive market factors.

Also, improved pork packer margins could support cash hog prices for the remainder of the week.

The Dow Jones packer margin index for Monday's operations was plus $14.62, compared with plus $9.60 the previous day.

Also, speculative buyers may be drawn to spot-October and nearby-December bullish discounts to CME's hog index.

By the same token, potential profit taking by short-term longs after Tuesday's futures gains may minimize Wednesday's potential gains or land some months in negative trading territory.

And, uncertainty about pork cutout values heading into the Labor Day holiday weekend may result in selling into potential futures upticks.

The U.S. Department of Agriculture's Iowa/Southern Minnesota weekly average hog weight data showed hogs in the region for last week at 267.2 pounds, compared with 267.1 a week earlier and 258.3 a year ago.

It is difficult to gauge whether producers in the Iowa/Southern Minnesota area are current in marketing their hogs based on the week-to-week weight numbers, a trader said. But, he said, year-over-year weights are still up, which will continue to be a problem for the pork cutout.

The October 47.63-cent 20-day moving average serves as an area of support. The contract's 49.45 Aug. 6 high is a resistance barrier.

December on Tuesday settled at par with the 47.10 20-day moving average. The contract's 46.30 Tuesday low is a price support level.

December's 47.75 Monday high is a price resistance obstacle.

CME bellies could begin the session generally lower on potential spot-August selling heading into the contract's 1 p.m. EDT expiration. The CME late Tuesday posted one belly delivery against the August contract.

Some spillover from February and March belly losses is anticipated. And, late-Tuesday's CME weekly belly storage report was considered bearish for futures on Wednesday.

CME reported 1.237 million pounds of bellies were removed from exchange-approved warehouses last week, compared with 2.639 million taken out of storage last year. The exchange quoted on-hand stocks for last week at 34.0 million pounds versus 39.4 million a year ago.

Demand for frozen bellies took a back seat to fresh product last week based on Tuesday's storage outcome, which could be bearish for futures, an analyst said.

However, possible short covering and sentiment that Tuesday's storage results were already factored into that session's back-month declines may limit potential losses on Wednesday.

Plus some speculative longs may key in on futures fall to new contract lows on Tuesday and possible seasonal lows on Wednesday.


Cattle Complex

CME live cattle may start the morning weak on futures' premiums to last week's cash sales and trepidation prior to this week's fed cattle trade, said analysts and brokers.

Only a few $82 per hundredweight cash-basis fed cattle bids were reported so far this week versus $85 to $86 asking prices. Fed cattle a week ago moved at $83 to mostly $83.50.

However, smaller number of cattle for sale this week in parts of the Plains, recent solid wholesale boxed beef values and profitable beef packer margins fans bullish cash cattle price optimism.

The CME late Tuesday reported two deliveries against August live cattle ahead of its Aug. 31 expiration. The deliveries are accepted by someone who is willing to take them.

August's 85.20-cents Tuesday low is a price support point. The contract's 86.25 July 22 high is a price resistance mark.

October's 88.54 10-day and 88.48 100-day moving averages are support levels. The contract's 88.94 20-day and 89.55 40-day moving averages are resistance barriers.

Feeder cattle may begin the morning mixed.

Leftover selling after Tuesday's modest losses and back-month bearish premiums to CME's feeder cattle index are negative market matters.

However, possible short covering and front-months in line with the exchange's feeder cattle index might become positive factors.


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