CATTLE: Cash cattle last week: $143.00 So., $143-146.00 Neb. and $230.-$232.00 dressed; on 120 boxed loads cut outs higher @ up. $.23 @ $232.66(c), up. $2.37 @ $223.95 (s) on moderate demand; Carcass Equivalent: $217.05 up. $.19.
COMMENTS: On the charts: sideways to higher near term trend continues and in a trading affair posture +$139.00 should see some selling and a close under the $137.00 the likely bull defense area. However, if the cattle are not there yet due to holding for heavier wts. and beef demand stays relatively robust maybe the upside can be taken out ($141.00 Q). Still support from the funds yesterday as open interest grew 6,040 even as June falls 3200 amid moderate volume. Yes, I am a bit either way in here as trusting the funds on the long side has been expensive to follow for the little guy inside this broad ranging trade.
Interior cash hogs @ narrowly mixed (w) to dn. $3.07 (e), rough avg. $106.00. Pork cut outs rose $.37 @ $117.51. Lean index 06/02 @ $110.34 dn. $.12.
COMMENTS: Cash hogs steady? Packer margins keeping a hand under the market but if bullish troubling the eastern interior got hit yesterday. And, while pork has acted somewhat well, no sustained day-to-day price increases, more like the packers Enron accounting. I/M wts. steady on week at 286.7lbs. and still up 10lbs. on year; open interest fell 1060 led by June off 3840 amid moderate volume; July hogs now on day-6 holding under major m/a’s at $122.53-122.32, needs at least a serious breakout over them to suggest getting bulled up.