CHICAGO (Dow Jones)--Chicago Mercantile Exchange hogs closed lower Friday on profit-taking and sell stops that snapped the contract's three-day streak of substantial gains.

Pork bellies also finished lower after posting three-straight sessions in which futures closed well above board. However, live and feeder cattle settled higher.

Most lean hogs receded after the opening bell as longs pocketed profits before the weekend. October and December overbought technical indicator discouraged prospective buyers.

Some were skeptical about December's bearish premium to CME's hog index. And, daily hog slaughters consistently above 430,000 head pressured some cash hog prices during Friday's session.

December and February later encountered key 100-day moving average technical resistance. And, Chicago Board of Trade corn's failed attempt to remain above board due to early-Friday's bearish U.S. Department of Agriculture grain reports dampened lean hog buying interest.

Meanwhile, spot-October vibrated within a narrow range as the contract prepares to expire on Oct. 14.

Spreading was the most popular play during the session which included traders selling distant hog months and buying forward contracts.

Cash hog prices are called mostly steady for Monday after packers assess their needs following Saturday's estimated 135,000-head kill.

CME livestock futures are scheduled to observe regular hours during Monday's Columbus Day holiday.

October hogs ended down 17 points at 50.85 cents a pound, and December closed 75 points lower at 52.77 cents.

Pork bellies finished lower on profit-taking after the contracts' three-day run up, sell stops and lean hog bearishness.

Burdensome hog kills and February's overbought chart signal scared off would-be longs. And, some in the pit earlier worked February/March bear spreads.

February finished 52 points lower at 84.25 cents a pound, and March closed 60 points lower at 82.40 cents.


Cattle Complex


CME live cattle closed higher on fund buying, buy stops and forward spreading.

Live cattle began the session with a sigh of relief after a willing taker absorbed a large number of live cattle deliveries posted by CME late Thursday. October and December oversold chart indicators lured speculative buyers.

And, October traders priced in cash-basis cattle this week that bought upwards of $82 per hundredweight versus mostly $83 last week.

December live cattle made further headway after the contract overcame the 10-day moving average resistance obstacle. Upward momentum stalled when December approached its 20-day moving average resistance barrier.

Meanwhile, deferred cattle months landed in positive trading territory despite soft CBOT corn and moderately higher U.S. equities values.

Until cattle market participants get a feel for cash prices next week, futures on Monday may be swayed by U.S. stocks, CBOT corn and possibly the U.S. dollar, which some view as a barometer for meat exports.

Market participants will monitor CME late-Friday information for possible deliveries.

And, USDA's monthly cattle-on-feed report will be released on Oct. 16.

October live cattle settled 75 points higher at 82.62 cents, and December closed up 62 points at 84.95 cents.

Feeder cattle ended higher as well on spillover buying after Thursday's futures climb, live cattle advances and buy stops. November was technically oversold.

Front-month feeders were nearly inline with CME's feeder cattle index. And spreaders implemented November/January bull spreads.

October feeder cattle settled up 20 points at 94.17 cents, and November closed 67 points higher at 94.47 cents.


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