CATTLE: Cash cattle this week $126.00 (steady) north/south live so far; $198.-199.00 north dressed (dn. $1-2.00); boxed loads cut outs——-not available: Carcass Equivalent: Not available.
COMMENTS: Futures cooling off some from yesterday’s concerns over South Korea’s import ban on certain U.S. beef and hopefully it’s nipped in the bud so to speak. However, it might have caused importers to back away this week until resolved. Open interest rose 1,792 in total with some Oct./Dec. rolling evident, volume relatively moderate; I am aside in here as mentioned but will point out some areas worth watching: December’s low end recent range $131.40-131.20; likely bull defense a close under $130.85 (by the way, $132.00 and over seems a reasonable hedge area).
Interior cash hogs yesterday not available, last rough avg. $89.50; cut outs n/a; lean index as of 09/27 @ $96.30, no longer available.
COMMENTS: Cash hogs not all that reliable early even under the packers ‘new’ way of buying hogs but I am trying to see where it (reporting) holds up better; daily kills running under USDA P.C. estimates needs watching as to why ? (could be interpreted several ways); open interest fell 6,678 and surprisingly spread over Oct./Dec./Feb. contracts…..rats abandoning ship?….volume high-side of moderate; December still in its broad, volatile trading range but yesterday’s ‘reversal of sorts’ demands caution, the lighter kills could be a backup and/or pork demand has waned. Who knows what lurks in the hearts of men (pork buyers), the packers know but not likely “The Shadow” (us).
Close under $85.50 still the likely bull defense area.