CATTLE: Cash cattle last week: $140.00/141.00,and $225.00 Neb.; on 96 boxed loads cut outs mixed at up. $.39 @ $211.16(c)/dn. $.18 @ $209.11(s) on light demand; Carcass Equivalent: $202.19 dn. $2.26.
COMMENTS: The talk of ‘better’ cash cattle prices in the south traced to a few head “at up to” $142.50. Not enough for me to get bullish necessarily. Packers are managing numbers still and trying to improve margins. Hence doubts cash cattle will be higher. Showlists also up north and south but by only 5-6,000hd. Open interest fell 3,700 led by G/J dn. 4500 amid moderate volume. Shortcovering. We’ll hold to selling near their 6-day high at $141.25 to probe the short side with a likely bear defense a close over $142.00 for now.
Interior cash hogs higher @ up. $.16(e)/$.53 (w) with rough avg. (w) $81.50; pork cut outs up. $.37 @ $91.41, quiet trade. Lean index as of 02/07 @ $84.54 up. $.30.
COMMENTS: Cash hogs about steady early with bitter cold still a feature. As mentioned,, trade talk of PEDv still around but as mentioned in my closing remarks, even the USDA does not have handle on it. Selling the April proved reasonable but down here not so much and will be aside. Nearby support $94.10-93.38. Will redo again on a rally to the 6-day high of $95.25.