CHICAGO (Dow Jones)--Chicago Mercantile Exchange hogs settled sharply higher Tuesday on fund-buying, short-covering and buy stops.

Pork bellies also finished up sharply. Live cattle posted an uneven finish while feeder cattle closed lower.

Lean hogs jumped from the outset, prodded by shorts who covered previously held positions after pork cutout's slight late-Monday increase. Pockets of steady-to-higher cash hog prices and recovering pork packer profit margins motivated bullish players.

October's oversold chart conditions wooed prospective longs. And speculative buyers targeted October and December bullish discounts to CME's hog index.

October and December made further headway after both months rolled through key moving average resistance barriers.

Meanwhile, back-month hogs benefited from the Dow Jones Industrial Average upturn, Chicago Board of Trade corn surge and lower U.S. dollar against some foreign currencies.

CME floor traders anticipate at least steady cash hog bids for Wednesday, depending on pork cutout's performance late Tuesday.

"Packers can pay more for hogs if they want to, but why would they if the meat side of the business is not cooperating?" a brokerage firm's hog trader said.

Market bulls and bears wonder whether Tuesday's strong futures showing will last into Wednesday given the market's penchant for not sustaining momentum for an extended period of time.

Spot-October lean hogs on Wednesday will come one day closer to its Oct. 14 expiration date, and the U.S. Department of Agriculture's Iowa/Southern Minnesota weekly average hog weight item will be available early Wednesday morning.

October hogs ended 105 points higher at 50.10 cents a pound, and December closed 152 points higher at 49.12 cents.

Pork bellies finished up sharply on short covering, buy stops and lean hogs' sharp rally.

February was technically oversold, and some in the pit earlier bought March and sold February on spreads.

February pork bellies closed 270 points higher at 80.40 cents a pound, and March closed 270 points higher at 79.00 cents.


Cattle Complex

October through February CME live cattle closed weak on delivery issues and cash cattle price caution for this week. Other cattle contracts finished above board on spreading into those options out of front months and expensive CBOT corn.

Live cattle dipped at first on weakness that spilled over from futures' softness on Monday. More than 100 live cattle deliveries posted by CME late Monday discouraged bullish spot-October traders.

Also, October and December not only triggered sell stops, but October fell to a 10-month low and December slid to a 83.50-cents new seasonal bottom.

Nonetheless, front cattle contracts momentarily bounced back due to short covering and October and December oversold chart conditions.

U.S. equities upturn and U.S. dollar withdrawal briefly inspired speculative live cattle bulls who later bowed out, which set forward cattle contracts adrift but kept back-month cattle afloat.

Market participants will be on the lookout for possibly more cattle deliveries as spot-October prepares for its Oct. 30 expiration.

Traders eagerly await this week's cash cattle price developments. A few cash-basis fed cattle bids surfaced at $81 in response to spotty $85 asking prices. Fed cattle last week moved at mostly $83.

October live cattle settled down 37 points at 82.30 cents, and December closed down 35 points at 83.55 cents. April closed up 12 points at 86.62 cents, and June ended up 35 points at 83.62 cents.

Feeder cattle ended lower on follow-through selling after futures' down day on Monday and bearish feeder cattle prices.

Prospective buyers became defensive about lower feeder cattle cash prices.

Furthermore, sell stops and CBOT corn advances sank front feeders to 10-month lows. Spreaders sold November and bought October and January on spreads.

Some spot-October selling took place ahead of spot-month expiration on Oct. 29.

And distant cattle contracts were at bearish premiums to CME's feeder cattle index.

October feeder cattle settled down 50 points at 92.85 cents, and November closed down 55 points at 92.75 cents.


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