CATTLE: Cash cattle last week: $144.00/145.00 south, $146.00 and $230-232.00 Neb.; on 126 boxed loads cut outs lower at dn. $3.85 @ $216.49(c)/dn. $2.58 @ $216.63(s) on moderate demand; Carcass Equivalent: $208.32 up. $2.10.
COMMENTS: Just how low will the cash cattle be? I am of the opinion for now its $140-141.00 this week. While Feb. has it covered, not sure the mid-$130.00’s the eventual target. April cattle might get some support from the excitement in hogs IF the promised PEDv reduces substantially pork supplies ‘down the road’. Weekly beef export sales limp at 8,100t.
Interior cash hogs mixed @ up. $.33(w)/ not/est. (e) with rough avg. (w) $80.50; pork cut outs dn. $.41 @ $90.04 in a quiet trade. Lean index as of 02/04 @ $83.45 up. $.64.
COMMENTS: Cash hogs firm? early. PEDv backgrounds the fuels the rally; open interest up 6,000 indicates funds (and others) are serious about it, volume strong.
Contract highs at $96.45; likely bull warning flag sub-$93.80.