CATTLE: Cash cattle last week $121.00 south, $123.00 Neb.; on 126 boxed loads cut outs: choice up. $1.29 at $190.28 select up. $.85 at $182.85 on moderate demand. Carcass Equivalent: $178.51 up. $1.25.
COMMENTS: Guess I should have followed the upside breakout rather than its reason (the feed additive deal). And the rally not a robust vote of health with open interest up just 1,013 and spread out over several months amid light volume. But why quibble? Next Oct. upside chart target $128.77 (200-day); overbought might get us a break back to the lower $127’s/high $126’s where there should be good support. Until then treating as a trading affair with fundamental support and premium resistance.
Interior cash hogs yesterday mixed at dn. $.31/up. $.11 rough avg. $97.40; cut outs dn. $1.16 @ $103.18; lean index as of 08/09 @ $102.16 up. $.23.
COMMENTS: Hogs joined meats yesterday in a general rally on features mentioned and on new longs: open interest rose 3,421 led by Feb. up 1026 amid moderate/light volume….still ‘classier’ than the cattle numbers though. Is it enough to signal an end to the month’s long October range? Maybe. Sorry, just maybe fundamentally but I’ll not fade $87.00 just yet. There might be enough (weather/school/holiday, etc.) to lift all boats on last-summer time.