CATTLE: Cash cattle last week: $155.00-157.50 (bulk $155-156.00); on 111 boxed loads cut outs lower @ dn. $1.36 @ $248.45(c), dn. $1.59 @ $242.65 (s) good demand; Carcass Equivalent: $232.29 dn. $.60.
COMMENTS: Not sure there was enough cash cattle sales to clean the showlists out, especially in Tx.; part of the reason for the big rally last week acutely tied to the discount to cash in the August as it went ‘too far’ let’s say on long liquidation. With the current now-narrowed discount, I am in no hurry to buy it. Too many questions over seasonal beef demand and the prospects kill numbers might pick up next couple weeks. My ’tilt’ is to sell rallies from here. Open interest little changed in total amid moderate volume; C-O-T report: neutral.
Interior cash hogs lower @ dn. $.18 (W), dn. $1.42 (E): rough avg. $127.45. Pork cut outs rose $.82 @ $136.78. Lean index 07/17 @ $133.78 dn. $.39.
COMMENTS: August hogs closed under their major m/a’s for the first time since early in the year, though the October has not. Maybe the August is telling us something? Nonetheless still leaves me a trading affair frame of mind. PEDV? Curiously little talk of it unless there’s a big rally out of nowhere which has happened maybe too many times. Open interest fell 6,000 led by the July then the August amid moderate volume; C-O-T report: leaned neutral.