CATTLE: Cash cattle last week $124.00-$125.00 (bulk) dressed $197 (bulk)-$198.00 Neb.; on 100 boxed loads cut outs: choice dn. $.57 at $195.71, select dn. $1.20 at $183.20 on light demand. Carcass Equivalent: $183.29 dn. $.19.
COMMENTS: Packers wait until the last minute to buy cash, eh? We need drama the day before a holiday? October in limbo on the charts as that ‘rolling top’ we looked at is now forming into a bullish pennant; Monday’s weather forecast looks outstanding for BBQ’ing….if it holds. Open interest rose 1,434 amid moderate volume. I’m keeping the same game plan for now.
***AUGUST FATS EXPIRE**********************
Interior cash hogs yesterday lower at dn. $.80/$1.45, rough avg. $86.85; cut outs dn. $.73 @ $96.20; lean index as of 08/26 @ $96.01 dn. $.97.
COMMENTS: Cash hogs seen weak ahead of the holiday is no surprise, nor should weak pork be. But weather looks decent over the long weekend for outside food consumption. In that regard: troops are still massing as open interest rises another 7,176 led by V/Z/G amid good volume. And prices near contract highs. I leaned to selling rallies for a while but time to post a bear defense at simply a new contract high (in the Oct.).