CATTLE: Cash cattle last week $128.00 (up $2.00) north/south $198.-200.00 dressed (sdy.); boxed loads cut outs——-not available: Carcass Equivalent: Not available.
COMMENTS: New contract highs after 2 negatives (So.Korea and major Chigo. grocery chain closing) impressive, though from a demand standpoint I still suggest an extended BBQ season helped quite a bit. Charts improved appreciably and total open interest rose 3784 even as Oct. fell 1651….only MIA was volume. Nonetheless the fund ‘switch’ looks alive and well. I have serious doubts cash cattle can get to or stay over say $135.00 an as such I have to keep a ‘trading affair’ label on the December (keep in mind Christmas
gift buying starts next month about the time beef price increases will be jumping in. For now, nearby (meaningful) support $132.15-131.65 (yes I know over $1.00 under current levels but keeping conservative. Cattle-On-Feed Friday, estimates later.
Interior cash hogs yesterday not available;
COMMENTS:Still very evident the switching between long hogs and into long cattle as mentioned; with that December hogs in a delicate dance in its low end of a broad range (at $85.90-85.50); open interest fell 1,679 led by October off 1,446 amid VERY light volume; nearby resistance $87.32-87.75, close over $88.00 likely bear defense and would stabilize the decline. Cash hog rumors are steady/weaker under the ‘new’ packer models