CATTLE: Cash cattle last week: $155.00-157.50 (bulk $155-156.00); on 143 boxed loads cut outs higher @ up. $2.08 @ $252.86(c), up. $1.71 @ $245.79 (s) good demand; Carcass Equivalent: $234.52 up. $1.37.
COMMENTS: New contract highs as August exploded yesterday. As mentioned there seems something ‘unusual’ happening in the beef first through price then through movement. All domestic demand? Seems unlikely and if so, looking for another possible reason (new exports?, that Il. China owned meat supplier we talked about?). Open interest rose 2300 even as August drops 3,900 amid good volume. Cold storage stocks came in under estimates but doubtful that’s the reason. Aside.
Interior cash hogs lower @ dn. $1.6 (W), dn. $.63 (E): rough avg. $126.00. Pork cut outs fell $1.00 @ $133.04. Lean index 07/21 @ $132.57 dn. $.59.
COMMENTS: August hogs narrowly missed falling through the bottom of a longer term trading range and had a ‘mini-reversal’ on yesterday’s action. Seeing as cattle was limit up, I’m not putting too much emphasis on it however. Nonetheless, it set up a likely bull defense a close under $124.45. Cold storage report had pork stocks over avg. estimates 3 months running but that type of news seems already discounted as per futures activity. I/M wts. drop .7lbs. to 284.8 but still 13.7lbs. over yr. ago. Curious how PEDv headlines are lacking in the livestock press.