CATTLE: Cash cattle last week $131.-132.00; on 134 boxed loads cut outs mixed at up $.75 (c)/dn. $.65 (s); Carcass Equivalent: $192.13 up $.75.
COMMENTS: ***Export sales delayed until tomorrow.
Cash cattle bids and offers typically widely apart but it’s possible holding steady would be a win for the cattle right now. Dec. seems to think so as prices hold in a 4-day range; important support remains at $132.40-132.30; nearby resistance $133.77-134.05; open interest rose 4,829 even as Dec. falls 6,300 amid strong volume…that’s a major battle that brewed yesterday in a narrow trading range. I remain near term negative with a likely bear defense a move/close over $134.50.
Interior cash hogs yesterday weaker at dn. $.21/$.37, rough avg. $81.15; pork cut outs dn. $1.50 @ $92.38. Lean index as of 11/08 @ $85.12 dn. $.18.
COMMENTS: Cash hogs weak side early as pork cut outs pressured mainly by bellies. One thing though: pork movement has been relatively heavy the last two days and has tempered some of the pork’s decline (sans bacon, a different animal). Nonetheless, December’s premium to the live/lean has been a source of pressure but currently in line with the lean but still premium the interior. Open interest fell 2,000 led by Dec. off 7,000 amid good volume. Overnight trade new swing lows but holding 2-1/2 month lows at $85.50 so far. Likely bear defense a move/close over $88.52.