CATTLE: Cash cattle last week $131.-132.00 sdy/up $1.00; on 102 boxed loads cut outs mixed at dn. $1.40 @ $210.16(c)/dn. $.08 @ $188.44 (s); Carcass Equivalent: $191.19 dn.$.73.
COMMENTS: I found it a bit surprising that cash cattle held firmly last week and with recent beef price declines if higher again this week might have to rethink overall demand. Until then, we deal with the same opinion (negative) and the charts: 6-day uptrend after holding major range-low support last week; likely bear defense a close over $134.52.
Perhaps strongly lower beef prices will spark export demand? C-O-T report: leaned bearishly. Open interest little changed in total amid rolling, volume moderate.
Interior cash hogs yesterday lower at dn. $.40/$.61, rough avg. $79.60; pork cut outs dn. $1.83 @ $91.12. Lean index as of 11/14 @ $84.39 dn. $.38.
COMMENTS: Cash hogs seen weaker as the pork cut outs fall hard led by the big guns of hams, loins and bellies. Seasonal demand, much higher wts. and ample numbers background the decline to a downside chart breakout. The PED potential problems still alive and well but that’s why we opted to buy calls on hedge equity. Open interest fell 1,005 led by Dec. off 2381 amid light-side volume; likely bear defense lowered to a move/close over $87.40. C-O-T report: leaned positive.