CATTLE: Cash cattle last week: $140.00/141.00,and $225.00 Neb.; on 157 boxed loads cut outs lower at dn. $2.74 @ $210.77(c)/dn. $3.12 @ $209.19(s) on moderate/good demand; Carcass Equivalent: $204.45 dn. $2.02.
COMMENTS: Regret no solid southern plains early here. Otherwise, the futures rally leaving some to suggests a bottom is in and all is back to just fine for beef demand. Really? Choice not long ago over $140.00 and Select over $137.00 shows a substantial break in prices to date (see above). I have no problem with retailers needing to re-stock and maybe set a few features but the large ship that is retail pricing usually does not turn a complete 360′ in just two weeks or so. Open interest fell 4,318 (led by Feb. off 7700 and confirms hedge lifting as mentioned) amid strong volume; C-O-T report: leaned negative to bearish. In here then, a run up to the 6-day high of $141.25 might be a region to probe the short side with the likely bear defense over $142.00 for trading turns.
Interior cash hogs mixed @ up. $.57(e)/dn. $1.80 (w) with rough avg. (w) $81.20; pork cut outs up. $.86 @ $91.04, hams make up for loin losses. Lean index as of 02/05 @ $83.61 up. $.36.
COMMENTS: Cash hogs steady early on artic cold again limiting early movement. I understand there’s a report that details PEDv findings: Jan. 223 vs. Dec. at 141? Will report more when I find a more in depth as to what it all means really. Nonetheless, it justifies the bull’s expanding premium to the cash markets and our probe of the short side premature, likely bear defense a new contract high.