CATTLE: Cash cattle last week $123 south; $122-123.50 north; dressed $194-195.00 Neb.; on 119 boxed loads cut outs: choice dn. $.63 at $195.23, select dn. $.72 at $181.19 on moderate demand. Carcass Equivalent: $182.12 dn. $.41.
COMMENTS: Well, last week the northern plains lost ground, off $.50/2.00, on ample supplies there but not demand. I still think beef is moving well but might have underestimated packer cooler inventories. This week? The weather has been favorable for continued grilling and outdoor eating in general. Yet October’s
premium was not justified coming in, obviously. Technicals remain downward and we’ll not fight it. Open interest fell 1,256 led by October off 4722 amid moderate volume (same fund pattern).
Interior cash hogs yesterday mixed at dn. $.09/up. $.44, rough avg. $88.50; cut outs dn. $.45 @ $94.44; lean index as of 09/05 @ $91.60 up. $.05.
COMMENTS: Cash hogs mixed with light weights vs. packer cut outs. Exports? Smithfield reported 1st Q loss of 36% on lowered pork exports (though maybe things perked up since?); more heat next couple days likely more talk of lighter tonnage; open interest rose 3,240 amid good volume; upside arbitrary to $91-92.00, close under $88.80 near term bull defense.