CATTLE: Cash cattle last week: $155.00-157.50 (bulk $155-156.00); on 118 boxed loads cut outs higher @ up. $2.07 @ $250.52(c), up. $1.43 @ $244.02 (s) good demand; Carcass Equivalent: $233.15 up. $.86.
COMMENTS: Well, combine sharply higher beef prices with lower showlists with higher futures and one would think cash cattle likely higher this week. OK, we’ll suggests a likely bear defense area near term a close over $154.00. Frozen beef stocks estimated off 1% on month, off 22% on yr.; open interest rose 1,000 amid light volume.
Interior cash hogs mixed @ up. $.01 (W), dn. $.57 (E): rough avg. $127.00. Pork cut outs fell $2.74 @ $134.04. Lean index 07/17 @ $133.78 dn. $.39.
COMMENTS: While August hogs are entering lean-dependent times, they certainly seem to be the touchstone for lower prices after a new swing low. I suspect some ‘important’ support now showing up at the very early July lows running $123.90-123.70; by the way, year to date pork production only off 1%; cold storage this afternoon sees avg. pork stocks dn 8% on month and off 7% on year; open interest little changed in total (Aug. off 5,000).