CATTLE: Cash cattle last week $124.00-$125.00 (bulk) dressed $197 (bulk)-$198.00 Neb.; on 120 boxed loads cut outs: choice up. $.35 at $196.91, select dn. $1.19 at $184.03 on light/moderate demand. Carcass Equivalent: $182.66 up. $.25.
COMMENTS: Cattle on feed report was lightly bullish and liked the marketing number backing up the Cold Storage beef stocks. However, 2 things for my concern: 1) heat advisories in several states (as per BBQ’ing) and 2) the C-O-T report was strongly bearish. Commercial moved in I believe and backgrounds why October’s past rally stalled around $129.00 mid-August perhaps. Now I fight the C-O-F report’s bullishness but as per Friday’s advisory, let’s keep our likely bear defense area a close under $126.27 for now and for now let’s see if any upside left to try $129.00-130.00? Open interest little changed in total or individually amid light volume.
Interior cash hogs yesterday mixed at dn. $.75/up $1.22, rough avg. $91.25; cut outs up $.94 @ $99 .70; lean index as of 08/22 @ $99.27 dn. $1.16.
COMMENTS: Cash hogs steady early, largely off the jump in cut outs I believe. The Cold Storage report was slightly last week but I wonder if the cattle-on-report not even better for the pork? Hot & Dry next several days not conducive to pork consumption but vs. beef say might hold its own after wholesale broke hard lately. Open interest fell 1,857 led by October off 3,611 amid light-side volume. October held the high-4nd of its band of support $84-83.00 but a bottom or a bounce? C-O-T report: slightly negative.
****SOYBEANS HIT BY HOTTER AND DRIER CONDITIONS THAN THE WEEKEND INDICATED. Doubtful the crop tour’s numbers was behind +50-cents higher.