CATTLE: Cash cattle this week $131-134.00 and $208-20 9.00 dressed; on 118 boxed loads cut outs Choice $201.07 up $.28, select $185.68 up. $.77 on moderate demand: Carcass Equivalent: not available likely for a few more days.
COMMENTS: I was a fan of the cattle market when it wasn’t popular several months ago but did NOT see record high cash cattle prices coming this time frame. Live cattle supplies seen relatively tight UNDER THE BEEF DEMAND WE ARE CURRENTLY EXPERIENCING. Perhaps ‘indoor’ consumption was followed in from the patio BBQ grills. Hence demand bull morphed into a supply bull. Will demand hold up as retailers jack up prices along the lines of the recent beef increases? Considering the seasonal of Turkeys and Hams is at hand these record high cash prices might be temporary. No major damage but like the December hogs a new high in December cattle turns me neutral (from a negative tilt) for now.
Interior cash hogs yesterday lower at dn. $.40/$1.02, rough avg. $86.25; pork cut outs at $94.46 up. $1.04. Lean index as of 10/23 $91.4 0 up. $.15.
COMMENTS: Cash hogs called steady/lower again which seems a bit surprising, considering the futures action. Some talk about cooler weather in the south (S.Carolina?) promoting a return to that hog disease PED (major Chigo. radio station also reported on it about 5a.m…….good a reason as any to negate the ‘reversal’ eh? But it has and I am aside; open interest rose 3,086 (led by October 2014 up 1,119!) amid good volume.