CATTLE: Cash cattle last week $126.00 (steady) north/south live so far; $198.-199.00 north dressed (dn. $1-2.00); boxed loads cut outs——-not available: Carcass Equivalent: Not available.
COMMENTS: Cows threaten Washington protest…to quit killing cows, not the shutdown.
A much better than expected performance out of the live market last week seems indicative of the rebound ‘lost spring’ grill demand but how long can it last? Temps are still very good on forecasts to the mid-’s this week but temps also look to be trending lower seasonally and losing more day light with it. Hence for now after recommending exiting October contracts last week I will turn neutral right in here. Open interest little changed in total but evidence of Oct. into Dec./April rolling as well, volume light to moderate. December’s premium tough for me to buy (in fact a few hedges warrented) and will advise.
Interior cash hogs yesterday not available, last rough avg. $89.50; cut outs n/a; lean index as of 09/27 @ $96.30, no longer available.
COMMENTS: Cash hogs apparently called steady/mixed and apparently a packer or two is offering producers an options for a different buying method: 1) negotiate or 2) marked to a formula from Urner Berry’s data bank (anyone left that remembers the “Yellow sheet”?). Neither a bad way to go it seems and as long as it’s truthful (tee-hee) why not let the packers release it? Open interest rose 2,378 even as October drops 1,900 amid light/moderate volume. Liquidating the October last week, like the cattle, putting me on the sidelines for the time being. December hogs at discount might find it support.