NOTE: DUE TO THE DROUGHT DETAILS IN BRAZIL I FORGOT TO MENTION A U.S. FUND GROUP SAYS A FUNGUS AFTER EXCESSIVE RAINS WILL MAKE AN 85MLN.M/T’ CROP
(VS. LAST USDA’S 90MLN.).
CATTLE: Cash cattle last week: $144.-145.00, and $230.-231.00 Neb.; on 90 boxed loads cut outs higher at up. $.68 @ $216.50(c)/up. $1.31 @ $213.90(s) on moderate/light demand; Carcass Equivalent: $207.96 up. $.39.
COMMENTS: April cattle responding to the PEDv threat for hogs in April (the latest date for it to occur since hog kills do not seem to reflect it yet) and prospects of higher cash
cattle this week. Australian cattle producers are said to be destroying livestock as cattle prices drop from A$500.00 to A$200.00. Open interest rose 2,145 amid moderate volume; while on the bull-bandwagon for now, a move/close under $141.85-140.90 the likely defense.
Interior cash hogs higher @ up. $.66(w)/up. $1.36 (e) with rough avg. $93.25); pork cut outs up. $1.27 @ $99.59, led by bells & loins. Lean index as of 02/24 @ $92.63 up. $1.05.
COMMENTS: Cash hogs called higher again. Packer cut outs miraculously rose from dn. $.71 midday to up $1.27 by late wire. I/M wts. rose 1.0lb. to 282.2 and up 6.0lbs. on week; open interest rose 3,916 amid good volume; the main futures theme I am happy to be a part of now is that PEDv is the “monster under the bed!”. April hogs now have $100.00 as a porous border and my concern will be a move/close under support at $98.30-97.85 for now. Upside? Pick a number. For now.