CATTLE: Cash cattle last week $129-131.00 and $203-204.00 dressed; on 77 boxed loads cut outs Choice $198.29 up $2.00, select $181.65 up. $1.67: Carcass Equivalent: not available likely for a few more days.
COMMENTS: Futures in a 3-day consolidation type trade after the major chart reversal last week. As mentioned, beef prices not sharply higher on new business but on paying for higher cash cattle last week…big difference if true. And, that argument seems supported by the poor amount of movement. Open interest little changed in total and individually except Dec. off 1,557, volume very light. No opinion change. Jobless data: new jobs up 148,000hd. vs. est. of up 185,000hd. Curiously the unemployment rate dropped to 7.2% vs. 7.3% prev.
Interior cash hogs yesterday dn. $1.341.81, rough avg. $88.10; pork cut outs at $95.02 up. $1.69. Lean index as of 10/18 $90.43 dn. $2.74.
COMMENTS: Cash hogs weak early though weather might tighten bids in some areas December hogs technically in ‘mid-range’ but we’ll stick with the possibility the futures reversal was a bull warning flag. Open interest little changed in total and individually and very light volume (about 18,000 each with cattle).