CATTLE: Cash cattle last week: $139.-140.00, Neb. dressed $221-22.00; on 94 boxed loads cut outs higher at up. $2.93 @ $214.88(c)/up. $2.53 @ $211.58s) on light demand; Carcass Equivalent: $202.94 up. $2.37.
COMMENTS: Record highs again in cash cattle last week. Curiously Feb. is stubbornly maintaining a sizeable discount. A sign perhaps? At some point the beef prices will be a likely bone of contention for the grocers. Open interest rose another 2,900 even as Feb. falls 8800 amid strong volume, indicates a significant ‘mini-battle’ considering a 5-day range; C-O-T report: leaned negatively. Feb. at/under $136.17 a bull warning flag, treating as a trading affair still; hedgers maintain previous recommendation.
Interior cash hogs lower @ dn. $.92 (e)/dn. $2.17 (w) with rough avg. $76.40; pork cut outs dn. $.11 @ $83.46. Lean index as of 01/08 @ $80.82 up. $.19.
COMMENTS: Cash hogs weak early. Seems the April’s premium is being justified by the threat of PEV but it’s always ‘down the road’ so to speak. Last time it was recognized in the cash market really was when we were in the grip of it last year. And how far will record high wts. go to decrease the effect of it when it gets here? Guess we’ll have to wait. As long as Feb. holds the April will. Open interest rose 2,150 even as Feb. dropped 5700 amid strong volume (rolling part of it but back month prices flat); C-O-T report: leaned neutral. I am still currently neutral speculatively.