Kleist Comments

CLOSING AGS 2/6/14
CLOSING AGS 2/6/14

Cattle: Cash cattle last week: $144-146.00. On 53 boxed loads cut outs dn. $2.27(c) to dn. $1.83(s) on light midday movement.

Comments: Beef prices are still the realm of $141-143.00 live even based on current weakness. Complicating matters for cash cattle are snow and slow logistics out east again, plus the packer’s “management” of feedlots. Did hear of some I/M at $140-141.00.

Hogs: Interior hogs Not/Est. early east. mixed west.

Pork cut outs fell $.67, in a quiet trade at midday.

Comments: Consolidation/profit taking seemed the order of the day. the ever-expanding premium April commands might need some stronger cash action to back up extended gains. The threat of a backup due to the storms doesn’t seem to be a bother but might be before too long.

GRAINS & OILSEEDS:

Corn: Consolidation after new swing highs. The good weekly export sales report was built-in and more China cancellations overnight were basically no surprise to the market. Overbought conditions might have made it a two-way (mixed) trade most of the session.

Soybeans: New swing highs but the rally paused early after the better than expected weekly export sales report popped the market near 20 cents higher. Likely a bit of profit taking but funds still buying underneath the market.

Wheat: Profit taking and lack of fund shortcovering comes to mind for the Chicago/KC market while MGE as higher on inter-market spreads apparently. A decent but reduced weekly export sales report might have prompted some concern the rally, as has been the case in most previous rallies of merit, further dampened export demand.

Kleist Comments

This is John Kleist, of Kleist Ag Consulting.
Questions? Email me: johnwkleist@sbcglobal.net

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