CATTLE: Cash cattle last week $131.-132.00; on 173 boxed loads cut outs lower at dn. $1.54 @ $199.02(c)/dn. $1.81 @ $187.90 (s) on good demand; Carcass Equivalent: $190.53 dn.$.58.
COMMENTS: Cash cattle likely lower as packers seemed to having a ‘fire sale’ on beef, though it did perk up demand. Nonetheless, supplies are likely still ample and need cleaning out pre-holiday. Open interest fell a rather large 6,607 led by Dec. off 7,742 amid strong volume. New range lows sets up a possible test of that gap at $130.22-130.12; my likely bear defense lowered to a move/close over $133.00. Cattle-On-Feed avg. est’s.: On feed 94%; Placed 110%; and Marketing’s 101.5%.
Interior cash hogs yesterday mixed at dn. $.39/up. $1.35, rough avg. $78.75; pork cut outs dn. $1.72 @ $90.96. Lean index as of 11/18 @ $83.29 dn. $.64.
COMMENTS: Cash hogs likely weak as cut outs drop again on weakness in the main primal cuts; yesterday’s early western post of up over $3.00 fell back hard to only up over $1.00 late; open interest fell 1,356 led by Dec. off 4,866 (hence some rolling) amid moderate volume; new swing lows suggests objective at $84-83.70 near term; likely bear defense unchanged at $87.40 for now.