CATTLE: Cash cattle last week $123.00-$125.00; on 107 boxed loads cut outs: choice up. $1.09 at $194.39, select up. $.68 at $186.39 on light demand. Carcass Equivalent: $180.74 up. $.73.
COMMENTS: Late week trade in cash cattle was decent at $2.00 higher and takes August off the hook (on premium) and might allow a larger October premium. Open interest rose 5,074 even as Aug. fell 1512 (Dec. up 3,190) amid moderate/good volume……mini-battle. October also had a curious chart formation that allows several interpretations. For now though, we’ll keep with better beef demand through Labor Day, Back to School and a late season BBQ’ing jam. $126.27 close under, the likely bear defense if buying breaks.
Interior cash hogs yesterday lower at dn. $2.28/$2.35 rough avg. $96.00; cut outs up. $1.27 @ $103.23; lean index as of 08/14 @ $102.56 up. $.07.
COMMENTS: Cash hogs called under pressure with ample supplies and a generally weak pork trade. Open interest fell 6,259 led by Aug./Oct. amid light volume (longs out of cattle into hogs?). Might be time to start selling rallies for trading turns and short hedges on position trades.