CATTLE: Cash cattle last week: $140.00/141.00,and $225.00 Neb.; on 172 boxed loads cut outs higher at up. $.05 @ $208.10(c)/up. $.13 @ $207.13(s) on good demand; Carcass Equivalent: $200.70 up. $.10.
COMMENTS: The light volume in Ks. at $142.00 was off $2-3.00 from TWO WEEKS ago but in the market’s eye, $142.00 is bullish since it was above the last weeks established trade. Get it? Me neither. However, that and the big beef movement with better exports DID allow me to dodge a bullet…almost like making money. Nonetheless, I am yet to be convinced retail beef demand will be enough to extend the cash cattle market back to old highs ($148-150.00), but still will not yet re-probe the short side. Cattle and beef prices went into rarified air and no precedent to rely on. Just in case: Mitchell SD market was steady/up $4.00 and might be an indication of Neb. prices? Sometimes it’s a good indicator. Open interest rose 1,200 even as Feb. falls 1700 amid good volume. Test of contract highs at $143.20 coming near term?
Interior cash hogs higher @ up. $.43(e)/$1.97 (w) with rough avg. (w) $83.80; pork cut outs up. $.70 @ $93.65, led by jumps in loins and hams. Lean index as of 02/12 @ $85.62 up. $.32.
COMMENTS: Cash hogs seen firm on better demand. Even though we dodged a bullet yesterday, I was a bit surprised pork trade volume fell way back again. But, with Feb. expiring today April the lead dog and that and summer months seem to be a function of PEDv or other virus’ fears and as such back to being a technician for awhile. Open interest rose 6,100 led by J/M/Z amid decent volume. Next apparent target contract highs at $96.45?