CATTLE: Cash cattle last week $123.00-$125.00; on 140 boxed loads cut outs: choice dn. $.14 at $195.46, select dn. $.38 at $184.44 on moderate demand. Carcass Equivalent: $182.19 dn. $.08.
COMMENTS: Something has to give? Open interest and insistent support around $128.00 Oct. looks like a dam building up. Hence I continue to let it cool up here and not wanting to buy premium that high just now. Keep in mind Cold Storage tonight and Cattle-On-Feed tomorrow; open interest rose 1,021 amid light-side volume. Weekly beef export sales rose to 16,100t vs. 12,700t wk. led by Japan/Mexico/So. Korea at 3300-3600t each.
Interior cash hogs yesterday lower at dn. $.97/$1.14, rough avg. $92.00; cut outs dn. $2.50 @ $98.84; lean index as of 08/20 @ $100.33 dn. $.89.
COMMENTS: Cash hogs seen under pressure as the pork trade, all of it basically we watch, was under pressure significantly. Weekly pork export sales fell to 7,700t vs. 8,500t wk.; open interest fell 1,768 led by Oct. off 2180 amid light-side volume. October hogs now under their major m/a’s at $85.32 but will the funds ‘defend’ remaining large long positions? Oversold, discount to the cash/index, Cold Storage report etc. suggests it’s likely.