CATTLE: Cash cattle last week $123 south; $124.00 north; dressed $196 (bulk) Neb.; on 183 boxed loads cut outs: choice up. $.46 at $196.56, select up. $.21 at $182.13 on moderate/good demand. Carcass Equivalent: $182.90 up. $.10.
COMMENTS: Some talk of feeder nervousness over the Tyson “Zilmax” ban and moving cash cattle under pressure? Beef movement now suggesting, due to the continuation of large movement, retail business might be better than expected after the holiday….sort of a ‘2nd spring’ of grilling weather? Open interest little changed in total even as October drops 3,880 (Dec. picks most of it up) amid light-side volume; deliveries 13. I’ll tilt to buying breaks in here for trading turns.
Interior cash hogs yesterday higher at up. $.50/$1.10, rough avg. $88.00; cut outs up. $.09 @ $94.89 ; lean index as of 08/30 @ $92.40 dn. $.85.
COMMENTS: Cash hogs seen higher as demand seen good, and as weights have yet to perk up; new contract highs keeps the technical in step higher though overbought; hello funds: open interest rose 4,624 led by Dec./Feb. amid strong volume; October over $90.00 a place to start light hedging (options for now).
Again, perhaps pork exports perked up along with decent warm weather U.S. pork demand but be on guard for quick reversals.