CATTLE: Cash cattle last week $130.-131.00, Neb. dressed $207-208.00; on 113 boxed loads cut outs higher at up. $.17 @ $196.86(c)/up. $1.46 @ $191.98(s) on light/moderate demand; Carcass Equivalent: $188.54 dn. $.01.
COMMENTS: Now being neutral we can look to see if the current Feb. chart consolidation has a breakout or if I see something more forward looking. Post New Year’s beef demand will be tricky and even now looking with a jaundiced eye the sharp narrowing of the choice/select beef spreads. Open interest little changed amid little volume. Close in Feb. over T/L resistance ($134.35) might trigger some technical buying. Typical year end lack of news. However, Friday’ Pig Crop could have an impact here.
Interior cash hogs @ I/m $74.33(n/c), western of $3.42-eastern (n/e); pork cut outs up. $.40 @ $85.48. Lean index as of 12/20 @ $79.73 dn. $.73.
COMMENTS: Cash hogs tough to pin down in the interior, I try to imagine what all the lack of quotes due to “confidentiality” really means. Pig Crop tomorrow and as before, past PC’s have been a debate over the minutia of a % of a % in differences. Open interest little changed amid little volume. Feb. makes a new swing low at $85.37 and $85.00 and under might provide obvious support. Not here yet but at some point look for a rally that is caused by the PED perhaps. Until then we’ll watch for regular fundamentals. Likely bear defense move over $87.00 for now.