CATTLE: Cash cattle last week $131.-132.00; on 95 boxed loads cut outs mixed at dn. $.60 @ $200.56*(c)/up. $1.27 @ $189.71 (s) on light demand; Carcass Equivalent: $191.11 dn.$.08.
COMMENTS: Well, the premium to the cash, the increasingly red packer cut outs and the technicals all may have conspired to push prices to new range lows and perilously close to closing under important support ($132.32). I wonder if this might have helped the “nervousness”: Saturday the new COOL labeling goes into effect after a previous 6-month grace period. Packers are lobbying hard against it while the cattle producers and consumer groups rally for it. I have only 1 opinion publicly: the new law that allows China to ‘re-export’ U.S. chicken after processing. That I’d like to know where it came from. Our likely bear defense lowered to a move/close over $133.85; there’s a gap at $`30.22-130.1-2 from Sept. the next downside target. C-O-F Friday.
*yesterday price was incorrect.
Interior cash hogs yesterday lower at dn. $1.25/$1.40, rough avg. $78.30; pork cut outs up. $.89 @ $92.01. Lean index as of 11/15 @ $83.73 dn. $.66.
COMMENTS: Cash hogs weak early. Big hogs are now termed bloated by the wire services. Gee, if not a bull market then humiliate them. The wt.s are on top of a seasonal demand problem and jacked up retail prices. Pork exports might be increasing ut no way to tell just yet. New multi-month lows an added bearish development with the next downside objective $84.-83.70 (t/l); adjusted likely bear defense a move/close over $87.40. Open interest fell 1,097 led by Dec. off 2594 amid fairly light volume.