Kleist Comments

CLOSING AGS 3/6/14
CLOSING AGS 3/6/14

Cattle: Cash cattle so far: $150.00 and $237.00 dressed North; south $148.00. On 50 boxed loads cut outs up. $1.29(c) to up. $1.16(s) on light midday movement.

Comments: Considering the discount to the cash cattle, even $2.-3.00 lower coming in, the extension of the break was a bit of a surprise. Might be longs looking to much higher prices had sell-stops built up under certain chart points. Feeder losses enlarged with the corn rally.

Hogs: Interior hogs to $2.33 higher(w), east Not/Est.

Pork cut outs rose $.03, mixed trade mostly narrowly.

Comments: Sure doesn’t look like yesterday’s huge (record) volume and some failures (April) meant anything all that negative. Even cattle’s drop was no deterrent to buying come back in. Apparently there is no concern over Russia’s ability or need to buy U.S. pork Monday and the market believes apparently that the ‘new’ PEDv-caused decline in kills now will in mid-March.

GRAINS & OILSEEDS:

Corn: New swing highs as weekly export sales up sharply that also makes some look for the USDA to increase exports, and with it lower carryover, on Monday’s USDA report.

Soybeans: Strong gains as weekly export sales old crop were significantly improved, led by Unknown destinations. Also, the prospect of the USDA raising export sales noted, though we likely might see a lowered crush to offset some or all of that.

Wheat: Took awhile this morning but wheat responded to the draw of the rallying corn market and a strong increase in weekly export sales. In Ukraine, farmer holding and dryness concerns adding to frets over the Russian situation.

Kleist Comments

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

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