CATTLE: Cash cattle this week: $150.-152.00 south, $152.-154.00 Neb. and $245.00 dressed; on 105 boxed loads cut outs lower @ dn. $2.57 @ $239.25(c)/dn. $1.12 @ $231.21(s) on moderate demand; Carcass Equivalent: $224.16 dn. $1.12.
COMMENTS: So far, no new highs as April and June merely run up to their perspective
range high areas before scaling back. April is being more defensive than the Dec. or the Feb. contracts before it when they lingered at discount. Might be telling us something as mentioned? Certainly looks like a distribution top forming. However, possibly the Pig Crop will take it out of its hesitancy if that report is overtly bullish. Retail avg. beef prices right at 1-cent under $5.00/lb. Open interest rose 1400 even as April falls 3270 amid moderate volume.
Interior cash hogs higher @ up. $3.92 (w) to up $02 (e), rough avg. $126.50: Pork cut outs dn. $1.24 @ $129.85. Lean index as of 03/26 @ $128.13 up. $1.10.
COMMENTS: Cash hogs? Back to higher? Those rascally packers didn’t fool anybody(for long). The market remains “who knows” as far as upside is concerned though while April made a new contract high, June has not (yet?) which might be in deference to the Pig Crop report and ‘just in case’ it is not quite as bullish as futures are. Open interest fell 3,355 led by April AND the June (off 4100)…(shorts panicked again yesterday) amid light-side volume. Let’s see what the report has to say.