CATTLE: Cash cattle this week $131-134.00 and $208-20 9.00 dressed; on 106 boxed loads cut outs Choice $200.97 dn $.10, select $185.40 dn. $.28 on moderate/light demand: Carcass Equivalent: $192.67 up $4.75.
COMMENTS: Was that another ‘type of reversal’ on the charts Friday’s? A scary Halloween? I cannot find any follow up or reason for a rumor that Tyson’s stopped buying Canada slaughter cattle but still OK with feeder cattle purchases. Point is that’s a good reason for the spike in futures as much as (or because of) record high cash cattle. I have been bullish beef demand but as mentioned the sharply higher beef prices combined with entering Thanksgiving ham/turkey focus’ cooled me off. But that said got binged on a short probe after new highs and not sure just yet another probe is not in order. Maintain hedges and before.
Open interest rose 3,045 led by G/J amid very strong volume (bit negative?).
Interior cash hogs yesterday lower west only at dn. $1.15/$1.22, rough avg. n/a; pork cut outs at $94.22 up. $.02. Lean index as of 10/24 $91.48 up. $.08.
COMMENTS: Cash hogs weak early and why was the Eastern interior activity so overt is was not quoted? “Confidentiality” and all that. Nonetheless, new contract high as funds come roaring back to the long side: open interest rose 5,000 led by Feb./Apr. amid moderate volume. Here also a probe of the short side was quickly exited though not much blood was spent. Talk of that North Carolina pig disease, that Tyson cattle rumor at all seemed behind the new highs. C-O-T report was friendly….3 weeks ago (CFTCF says will update on Nov. 8th). I am aside in here. Seasonal and these prices keep me from turning buyer.