CATTLE: Cash cattle last week: $143.00 So., $143-146.00 Neb. and $230.-$232.00 dressed; on 114 boxed loads cut outs lower @ dn. $.23 @ $232.43(c), dn. $.42 @ $221.48 (s) on moderate demand; Carcass Equivalent: $216.86 dn. $.07.
COMMENTS: On the charts: Mini-battle yesterday as open interest rose 4,200 and prices were in a contained range: If looking to buy…As Clint Eastwood said “feel lucky punk? well do you? June’s major m/a’s come in at $136.85-136.83 and ones likely bull defense near term; even at discount I find it tough to trust the long side blindly. Otherwise, range conditions and cheap corn keep fueling feeder cattle though cattle futures to hedge a loss; Nebraska showlists off 27,000hd. est. should be a bullish no-brainer but it wasn’t yesterday; June chart gap at $136.32.
Interior cash hogs @ up. $1.00 (w) to N/C (e), rough avg. $107.25. Pork cut outs rose $1.23 @ $117.14. Lean index 05/30 @ $110.46 dn. $.21.
COMMENTS: Cash hogs seen weaker though packer margins are black; pork trade very uneven and not defining a trend I can see higher yet; open interest rose 1100 even as June fell 2100 amid light-side volume. There might be some encouraging signs to look for an upside correction but not sure worth playing for it yet; let’s get through July’s major m/a’s at $122.42-122.68 1st (which is also the likely bear defense near term).