CATTLE: Cash cattle last week: $146.00Ks., $145.00 Tx. south, $148.00 Neb. and $235.00 dressed; on 135 boxed loads cut outs mixed @ dn. $1.26 @ $233.10(c) up. $1.87 @ $222.29(s) on moderate demand; Carcass Equivalent: $218.49 dn. $1.12.
COMMENTS: The best thing June cattle has going for it is the discount it seems as outside investors are quiet lately. And while seasonally June is negative, all that talk of PEDv pork declines barely seems supportive. For now anyway. Weekly beef export sales fell 39% to 11,600t led by Japan at 6,100t; open interest little changed in total and individually amid moderate/good volume (the boys are active day traders). Two points I am watching are $137.95, and $136.40 for very near term direction.
Interior cash hogs mixed @ dn. $.50 (e) to up. $1.06 (w), rough avg. $109.75: Pork cut outs rose $.70 @ $114.09, fairly quiet changes. Lean index 04/29 @ $115.62 dn. $.60.
COMMENTS: Cash hogs called lower. Curious how packer demand has waned after the Cold Storage report indicated ‘time to bake the donuts’ and refill pipelines; weekly pork export sales fell 35% to 9,800t led by Mexico at 3,900t; NPPC says hog prices to rise 15-25% and retail rise 10-12% over 7mln. dead piglets, sees 3rd Q kills off 6-8%; weekly pork export sales fell 35% to9,800t with Mexico taking 3,900t; May Day’s here….working pigs of the world unite! Remember the book Lord of the Flies? Otherwise, of course that PEDv apparent eventuality has been keeping a broad, underlying supportive base in futures. Current kills not enough for new highs? Open interest fell 5,580 led by June and the August amid moderate volume. Move/close over $126.02 to extend advance or below $121.43 to extend decline. Otherwise stuck in a range.