CHICAGO (Dow Jones)--Chicago Mercantile Exchange hogs settled steady to lower Friday on profit-taking, sell stops and spreading out of distant contracts into forward months.

Live cattle closed flat to weak and feeder cattle ended moderately lower. February pork bellies, the only contract that traded, ended up slightly.

Lean hogs jumped initially in response to late-Thursday's sizable pork cutout price increase and early steady-to-higher terminal hog market values. Speculative futures buyers were drawn to spot-October and nearby-December that were nearly in line or at discounts to CME's steadily gaining hog index.

However, bullish traders pocketed profits ahead of the weekend after recent futures' rallies. Prospective longs were hesitant to push October and December further into overbought technical territory.

And a few spot-month buyers had a change of heart after midday direct hog market cash prices came in lower.

Periodic "Goldman roll" activity surfaced, but October/December forward spreads were more common during the session.

Friday was the fourth of five days for the current "Goldman roll" period that consists of funds shifting some of their October long positions into December. The move is done in conjunction with the S&P's GSCI.

Steady-to-weak cash hog packer bids are forecast for Monday as processors evaluate their needs after Saturday's USDA estimated 330,000-head slaughter.

And Monday will be the last official day of the current S&P GSCI roll phase.

October hogs ended up 5 points at 52.47 cents a pound, and December closed 87 points lower at 49.82 cents.

February pork bellies settled up 15 points at 88.30 cents after a session of pre-weekend position squaring by market bulls and bears in the thinly traded market.


Cattle Complex

CME live cattle closed flat to weak on spreaders who sold December and bought October, sell stops and traders who factored in cash cattle prices so far this week.

Cash-basis fed cattle in the Plains this week roughly moved at $84 to $85 per hundredweight compared with mostly $85 last week. While cattle sales are thought to be done in Nebraska, some cattle remain to be bought in parts of Texas and Kansas.

Cattle futures spiked at first on short covering and buy stops that later gave way to cash cattle price jitters and technical resistance. Live cattle ebbed and flowed as those who were long and short the market settled their business affairs before the weekend.

But beef futures were unable to maintain initial advances despite U.S. stocks' initial rise and the U.S. dollar's tumble.

Traders on Monday will begin the week with depressed wholesale boxed beef prices and tighter beef packer profit margins. The U.S. Department of Agriculture's monthly cattle-on-feed report will be released next Friday.

Funds were able to roll some of their October long positions into December Friday and they are expected to repeat the strategy on Monday.

October live cattle closed unchanged at 87.22 cents a pound, and December finished down 22 points at 86.92 cents.

Feeder cattle ended lower on sell stops and modest live cattle declines. Futures' premiums to CME's feeder cattle index and chart support loss contributed to feeder cattle bearishness.

September feeder cattle settled down 32 points at 99.17 cents, and October ended down 45 points at 99.32 cents.

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