CATTLE: Cash cattle last week $131.-133.00, Neb. dressed $208-209.00; on 142 boxed loads cut outs lower at dn. $2.16 @ $200.45(c)/ dn. $.48 @ $186.620(s) on moderate/good demand; Carcass Equivalent: $191.20 dn. $1.05.
COMMENTS: At least the lower corn prospects are bullish feeder cattle right now. Cash cattle price outlooks for Steady much less better look ‘iffy’ as packer margins keep eroding as they seem to be having a fire sale for beef. Maybe they’ll give the producer an early Christmas gift? Then again, maybe not until next week. Open interest little changed in total, some rolling evident between Dec. and August contracts (dn. 1595/up 1346 respectively) amid light-side volume. Likely bear defense remains +$134.20 for now.
Interior cash hogs higher @ up. $.57(e)/$.27(w), rough avg. $78.50; pork cut outs dn. $1.87 @ $87.75. Lean index as of 12/11 @ $81.15 dn. $.20.
COMMENTS: Cash hogs might hold some but the cut outs, courtesy of hams and loins, will make it tough to pay up. Reportedly another 140 cases of PED reported, up strongly from the previous week. December’s expiry and the Feb.’s premium still a sell target thought the break has calmed down. Will maintain the likely bear defense a move/close over $89.50 (lowered from $90.80) for now.