CATTLE: Cash cattle this week $132.-133.00, Neb. dressed $210.00; on 118 boxed loads cut outs lower at dn. $.89 @ $202.41(c)/$.42 @ $189.62(s) on moderate demand; Carcass Equivalent: $192.64 dn.$.14.
COMMENTS: Cash cattle roughly steady but volumes in many areas are light. Perhaps a game of chicken ahead of another week of bitter cold coming? 2 possibly supportive influences here: 1) well oversold and 2) unemployment falls to 7% vs. 7.2% (in reality, overall economy not encouraging though); Wed.’s open interest was up 3600 and yesterday’s down 3,055 led by Dec./Feb. off 4700 amid decent volume. Nasty downside breakout might be hinting at beef/cattle prices too high going into the Christmas holidays. Nearby resistance now $133.50-$134.00; near term t/l support roughly $132.50.
Interior cash hogs lower at dn. $.37(e)/$1.12(w), rough avg. $77.90; pork cut outs up. $.16 @ $88.59. Lean index as of 12/04 @ $82.91 up. $.22.
COMMENTS: Cash hogs likely weak as pork trade remains flaccid and numbers/wts. remain ample. December hogs nearing parity with the lean index but Feb. still vulnerable (maybe underlying support from lingering PED concerns?) with nearby resistance $89-89.50 and a likely bear defense a move/close over $90.75.