CATTLE: Cash cattle last week $121.00-$123.00; on 85 boxed loads cut outs: choice up. $.04 at $190.22 select up. $.45 at $183.30 on light demand. Carcass Equivalent: $178.55 up. $.04.
COMMENTS: Well, both the cash beef price increases and the beef movements have been dropping, perhaps hit a demand-wall near term? Futures another boost of confidence as open interest rose 3,112 even as August fell 1623 amid moderate volume. Bit limp but will take what we got. Nearby support $128.25-128.00, likely bull defense a move/close under $126.27 near term.
Interior cash hogs yesterday higher at up. $.53/$1.26 rough avg. $97.80; cut outs up. $.03 @ $103.21; lean index as of 08/12 @ $102.23 up. $.07.
COMMENTS: Cash hogs called firmly on good demand, though I see some ‘cooling off’ in the pork trade coincidently with the beef details. Nonetheless, I soft peddled the ‘break out’ in October cattle charts and now October hogs poised to do the same over $87.00 (and at a discount, not premium as cattle are); open interest not quite the perfect partner but it did rise 2,033 led by Feb. up 1,066 amid light/moderate volume. Buy the Breakout? August expires today with a $15.00 premium to the October…what could go wrong?