CATTLE: Cash cattle last week $126.00 north/south; $198.-200.00 north dressed; boxed loads cut outs——-not availiable: Carcass Equivalent: Not availiable.
COMMENTS: Government shut down leaves futures in the hands of the funds and the packers, more than ususal of course. How about the packers “voluntarily” giving, say, Dow Jones beef/live information? Right. However, big traders (cash/funds) will be under the microscope to keep an eye on them just in case they see a blind-spot opportunity. For now, same as yesterday’s technicals: near term likely bull defense a close under $126.50; rallies tough to extend (i.e. $128-129.00) on October’s premium to last week’s live. Open interest little changed in total though good rolling noted between the Oct. and Dec., volume moderate.
Interior cash hogs yesterday not availiable, last rough avg. $89.50; cut outs n/a; lean index as of 09/27 @ $96.30, no longer availiable.
COMMENTS: Cash hogs called weaker as with no USDA reports to guide them, producers are dancing in the dark (sorry Bruce!) and a bit worried as mentioned.
However, no covert packer plans seem afoot with packers likely treading lightly about not giving the hog producer a fair shake with the shut down. Hence off to the technicals again: October found support in our $91-90.00 area, close under $89.40 the likely bull defense area, and if holds $92-93.00 the nearby upside objective; open interest total fell 5,800 led by Oct./Dec. off 6400 combined amid strong volume (weak longs kicked out?)