CATTLE: Cash cattle last week: $148.00 south, $150.-151.00 Neb. and $240.00 dressed; on 160 boxed loads cut outs lower @ dn. $.46 @ $225.00(c)/dn. $.93 @ $214.30(s) on good demand; Carcass Equivalent: $216.46 dn. $.19.
COMMENTS: That “magic” $143.00 area in April has some fundamentals after all part II: besides what I mentioned yesterday, another big day of beef movement and retail beef slightly lower on features (but like this for example—Strip Steaks $7.16lb. but a sale on Sirloin at $5.00lb.; and Obama goes to Japan for trade talks and apparently Japan already said offering to lower its beef import tariffs to 10% vs. 38.5% currently, talks start April 25-26th. Now that we know good reasons for the April’s magic support but does that mean a new bull market in the offing? Not likely. Tis’ best to take the money and run at whatever perimeters one uses. Open interest fell 1550 led by April AND the June off 2500 amid light volume. Trading affair.
Interior cash hogs mixed @ dn. $3.70 (w) to not/est. (e): Pork cut outs dn. $1.84 @ $123.88, bellies dn. +$8.00 led it. Lean index as of 04/08 @ $128.62 dn. $.57.
COMMENTS: Cash hogs likely lower as packer margins still in a collapse. Certainly seemed the rally 2 days ago was possibly packer smoke and mirrors as mentioned. Open interest little changed in total and individually amid moderate/light volume. June back to the $120.00 area but I do not trust buying it and leave it to day-traders.
Retail meat focus for Memorial Day beef oriented of course.