CATTLE: Cash cattle last week $123.00-$125.00; on 120 boxed loads cut outs: choice up. $.83 at $195.22, select dn. $.24 at $186.15 on light/moderate demand. Carcass Equivalent: $182.02 up. $1.28.
COMMENTS: The ‘easy’ part of the recent run up is over, now we watch to see if beef demand can be SUSTAINED another couple weeks. There still seems a switch from fund long hogs into cattle and retailers focusing on beef vs. pork (basis wholesale). Might be long skid marks. Open interest fell 1,273 led by October off 1570 amid light-side volume. For now I’d be satisfied to see $129-130.00 October for an upside target and then see if beef can still perform. So for now still using a buy-break formula.
Interior cash hogs yesterday lower at dn. $.05/$1.97, rough avg. $94.15; cut outs dn. $1.92 @ $101.31; lean index as of 08/16 @ $101.77 dn. $.69.
COMMENTS: Cash hogs under pressure as cut outs get hit hard with loins losing $5.50, the rest limp generally. Kazak bans Ukraine poultry imports over safety checks but certainly seems more political than possibly helping U.S. poultry exports. Open interest fell 8,582 led by Expired August off 8,277 (other months little changed) amid light-side volume. Maintaining a sell-rally bias.