Chicago Mercantile Exchange (CME) feeder cattle futures firmed on Thursday, rebounding from a sharp decline a day earlier on support from weakness in the corn market, reported Reuters.

Live cattle futures also closed higher but hog contracts weakened, extending a sell-off that started on Wednesday as traders said the market remained technically overbought.

Analysts were expecting a US Department of Agriculture (USDA) report on Friday afternoon to show the number of cattle on feed as of June 1 was 96.6% of the year-earlier total. May placements were pegged at 101.7% of May 2022 and May marketings at 101.6%.

The August CME feeder cattle contract gained 2.95 cents to 230.675 cents per pound, rising above the low end of its 20-day Bollinger range.

CME July hogs fell 2.9 cents to 91.85 cents per pound. Most-active August hogs shed 2.8 cents, to 89.975 cents a pound. The August contract turned lower after hitting technical resistance at its 100-day moving average.

The USDA priced the pork carcass cutout at $96.50 per cwt on Thursday afternoon, 42 cents higher than Wednesday.

CME's benchmark August live cattle contract settled up 1.4 cents at 171.15 cents per pound, breaking through its 20-day moving average before hitting resistance as it neared its 10-day moving average.

The USDA priced choice cuts of beef at $334.47 per hundredweight (cwt) on Thursday afternoon, 22 cents higher than a day earlier. Select cuts were 45 cents lower at $303.80 per cwt.

Profit margins for meat packers rose to $165.30 per head of cattle, up from $142.48 on Wednesday and $145.85 a week ago, according to livestock marketing advisory service HedgersEdge.