CLOSING AGS 10/28/13
Cattle: Cash cattle in total: $131-134.00 and $207-208.00 dressed; On 51 boxed loads cut outs sharply higher at up. $2.63 (sel.) to up. $2.74 (chc.) on light midday volume.
Comments: Inside day in a typical consolidation trade after another ‘reversal of sorts’. Open interest suggests funds are still buying long though more so in the hog pit for now. Lack of apparent live supplies, sharply higher beef prices again backgrounding the strength; showlists estimated at up 2,000hd. Neb.; 3,000hd Tx. and up 8,000hd. Ks.
Hogs: Interior hogs vs. yesterday N/E eastern corn belt to up $1.48/1.51 western; pork cut outs slightly higher midday.
Comments: More new highs in what appears another fund buying rout after yesterday’s open interest rose over 5,000 contracts (highly unusual for hogs) in a day. Backgrounding the support talk of that swine disease popping back up in North Carolina; on ideas record high cattle/beef prices will translate into a jump in pork demand.
GRAINS & OILSEEDS:
Corn: New lows here on what might be more fund ‘shorting’ on the back of heavy weekend harvesting, weaker cash markets and a push for harvesting today into Wed. ahead of rains moving in.
Soybeans: No new swing lows but the best back ground for the sharply prices might be my opinion that since 1st notice day is coming up and with it more delivery possibilities thanks to a big harvest forced weaker long to abandon ship (Friday’s O-I fell 36,000 or so…tough crowd); no talk of any cancellation’s by any importers; hence a big part of the play then largely liquidation/technical.
Wheat: Strong losses but no new swing lows. Most of the pressure seen as spillover from the corn action and perhaps sharply lower beans was a scare factor. In the broader context simply another wimpy trade inside its multi-week range.