CATTLE: Cash cattle last week: $163.00-164.00; on 145 boxed loads cut outs mixed @ up. $.09 @ $263.28(c), dn.$.09 @ $258.03 (s) on moderate/good demand; Carcass Equivalent: $243.75 dn. $2.25.
COMMENTS: The big beef movement yesterday is drawing bullish reviews and if beef price can hold, expectations of a steady/higher cash cattle market. I don’t think so. Not yet anyway. Showlists north have swelled largely due to packer management I believe and beef movement likely part of fill-in chain demand. Hence, while at a discount I suspect there will be selling at/over $160.00 August with a likely bear defense a close over $160.50; open interest fell 1800 led by Aug. off 4100 amid moderate volume.
Interior cash hogs lower @ dn.$3.54(W), dn. $1.18 (E): rough avg. $116.00. Pork cut outs rose $.12 @ $126.82. Lean index 08/01 @ $125.07 dn. $.75.
COMMENTS: Not surprisingly the chart action giving rise to bottom action and maybe so. I’m not convinced. The discount in the October is toothless as a buying opportunity unless there’s a change of hog number perceptions. Or weights. As such I see the tilt as selling strong rallies with a likely bear defense over $106.00 for now. Open interest little changed in total even as August falls 2800 mid light-side volume.