CATTLE: Cash cattle last week $132.-136.00, Neb. dressed $211-214.00; on 144 boxed loads cut outs higher at up. $.94 @ $200.65(c)/up. $.95 @ $196.41(s) on good demand; Carcass Equivalent: $192.60 up. $.89.
COMMENTS: Now the tough work ‘looking at the other side’: beef prices are not rising high enough to pay for last week’s record high cash cattle; open interest rose another 3,056 amid moderate volume YET Feb. out I a new high by just several cents and closed on its lows in a ‘mini-reversal’; Midwest snows to hamper grocery shopping? and a big storm out East to disrupt shipping through next week? Yea I know but its my job to point out certain possibilities. The C-O-T report was a bit friendly. For now, close under $133.72 turns me to neutral.
Interior cash hogs mixed @ n. $.11 (w)/up. $1.68 (e) with rough avg. $77.40; pork cut outs up. $.37 @ $83.44. Lean index as of 12/30 @ $79.66 up. $.14.
COMMENTS: Cash hogs tough call with all the weather issues around. In my area we had 6″ and another 4″ lake effect on the way. Like the beef, Midwest shoppers might be dissuaded from grocery stores and shipments out east could have a problem. The ability of Feb. to hold just over its gap and rally some bullish. Not yet perhaps but the rally did not hit over our likely bear defense at $86.25, it hit that exactly so not trying to split hairs here. I/M wts. up another 1.7lbs. on week and up 6.6lbs. on year; open interest rose 1,939 but spread out among various months amid light volume. The seasonal rise in hog prices the first full week of a new year might be delayed or negated by the snowstorms.