CATTLE: Cash cattle last week $123 south; $124.00 north; dressed $196 (bulk) Neb.; on 109 boxed loads cut outs: choice dn. $.04 at $195.67, select dn. $.54 at $183.66 on moderate demand. Carcass Equivalent: $183.24 dn. $.05.
COMMENTS: Last week’s cash cattle basically ends steady/dn. $2.00 in live and dressed and explains October’s reluctant to press on higher, extending its premium. Weather over the weekend looked generally fine and I’d expect Top-shelf clearance but the key will it be enough and consistent afterwardsto sustain it. We wait. Open interest fell 1,000 led by October off 5,378 (Dec. up 3741) amid moderate volume; C-O-T report: very neutral. Trade it.
Interior cash hogs yesterday mixed at dn. $.40/$1.07, rough avg. $87.20; cut outs dn. $1.87 @ $94.33; lean index as of 08/28 @ $96.20 dn. $.94.
COMMENTS: Cash hogs early seen weaker as per cut outs but buy daily cut outs tough to believe per se. Nonetheless, perhaps October hogs merely narrowing its discount to the live/lean with funds, traders currently in the mood of not pressing the market. Likely bear defense still a move/close over the ‘double top’ at $88.35; open interest rose 1,345 amid moderate volume; C-O-T report: largely neutral.