CATTLE: Cash cattle last week $119.00 south, $120-121.00 north; on 195 boxed loads cut outs: choice dn. $.35 at $192.72, select dn. $1.34 at $184.715 on good demand. Carcass Equivalent: $178.82 dn. $.10.
COMMENTS: Packers digging in their feet so far in Tx./Ks./Oklah. and Neb.
with bids $116-117.00. Guess they want to keep their margins profitable. On the other hand, beef movement has been running good (no fire sale evident) and decreasing their stocks. Hence futures reluctant to move much. Open interest a net loss (dn. 2,685) but OK since August was most of it (dn. 12,087; over 9,000 replaced)), volume good. A good break will find us buyers.
Interior cash hogs yesterday lower at dn. $1.02/dn. $1.90 rough avg. $97.90; cut outs dn. $1.37 @ $100.33; lean index as of 07/10 @ $103.08 dn. $.04.
COMMENTS: Cash might be weak again as an unusual 4-day decline in pork cut outs eats into profit margins. July expires Monday and as a lagging index, packers can afford to squeeze it. August still showing signs of exhaustion but needs a move/close under $94.22 for a new leg down. Tilt remains sell rallies.