MORNING MEATS 7/8/13
CATTLE: Cash cattle last week $119.00 south, $120-121.00 north; on 121 boxed loads cut outs: choice dn. $1.39 at $196.36, select dn. $.74 at $187.73 on moderate/light demand. Carcass Equivalent: $180.79 dn. $.93.
COMMENTS: If using the entire 4-day holiday many took, weather overall looked good for BBQ’ing, now we need to see if enough to turn the beef around. At worst perhaps, I suspect beef clearance was good and retailers need to restock which might put a floor under this week live market. If not, hate to depend on exports. Open interest rose 1,1159 amid very light volume Friday; my parameters still in play.
Interior cash hogs yesterday mixed at up. $1.5 8/dn. $1.81 rough avg. $99.00; cut outs dn. $.32 @ $104.38; lean index as of 07/03 @ $103.41 up. $.20.
COMMENTS: Cash hogs likely steady-ish as retailers add up 4-day meat clearance then translate it to the packers. The “battle” continues as open interest rose another 3,916 led by Oct. up 2790 amid moderate volume. As before, I am taking a bearish stance in the battle though interior markets are only weakening grudgingly.
No CFTC Friday, out today.