CATTLE: Cash cattle last week $132.-134.00, Neb. dressed $209.-210.00; on 141 boxed loads cut outs lower at dn. $.06 @ $203.00(c)/$1.53 @ $189.968(s) on moderate demand; Carcass Equivalent: $192.64 up.$.41.
COMMENTS: Cold, snow, Ice, wind still may be a factor but I cannot find any USDA confirmation of that lower Nebraska dressed sale rumored yesterday. December is tracking current cash if not at a slight discount to the best prices. February has eased back but no technical damage; nearby support comes in at $133.20-133.00 with a buy bias but beware volatility. Open interest little changed as Dec. lost 4,084 but picked up in the J/M/Q, volume moderate.
Interior cash hogs Wed. lower at dn. $.19(e)/$1.43, rough avg. $79.00; pork cut outs dn. $.90 @ $89.67. Lean index as of 12/02 @ $82.25 up. $.37.
COMMENTS: Cash hogs likely weak as supplies generally ample and wts. generally high: I/M wts. 281.7lbs. up .3 on week and up 6.5lbs. on year. Cause and effect? After hearing some look for the pork to crash, open interest falls 4,500 led by Dec. AND Feb. off 6,500 amid strong volume. Dec. makes a 3-month low and Feb. a 2-month low in its aftermath. I’ll go chart on us: likely sell are Feb. $90.00 o.b. and a likely bear defense +$91.50 for now.