Kleist Comments

MORNING MEATS 04/25/13

MORNING MEATS 04/25/13
****************

CATTLE: Cash cattle last week $126-126.50. Neb. dressed $200-202.00; On 148 boxed loads cut outs: choice up. $.13 at $191.54, select up. $1.03 at $184.81 on moderate demand. Carcass Equivalent: $181.71 up. $.05.

COMMENTS: Select beef prices up $2.30 the last two days suggests BBQ items and falls in with the retail report of ‘budget’ grilling meat features; warmer temps. and a drier trend seen in medium-term weather forecasts; open interest little hanged in total even as April falls 2.050, volume light/moderate; weekly beef export sales fell 6% to 15,900t, a moderate amount. June cattle’s next wall at $123.00 and if indeed that seasonal demand kicks in should be a no brainer buying the discount….I admit to a ‘no brain’ on that logic though. Hence for specs as before will trade the charts unless some more positive items move us.

HOGS:

Interior cash hogs yesterday higher at up. $.67/$1.10, rough avg. $78.00; cut outs up. $.19 @ $86.50; lean index as of 04/23 at $80.69 dn. $.20.

COMMENTS: Cash hogs look quiet again. In the pork trade, bellies fall $3.24 leading to the cut outs weakness; warmer and drier weather in medium term forecasts look helpful domestic demand. Last week I mentioned the pork trade looked in better shape but I hesitate buying the premium and in fact recommending new hedges over $90.00 summer. Hence, for now will keep spec likely bear defense a move over $92.25 as before. Open interest rose 2,693 led by Oct. up 1250 and rest scattered, volume moderate. Weekly pork export sales 12,200t vs. 8,300t a slight improvement on week.

Kleist Comments

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

Disclaimer: Trading options and commodities involves risk of loss and my not be for every investor. Past trading results may not be indicative of future performance. Although information and opinions provided herein are compiled from sources believed reliable, the sender, EBOT Trading, or its principals cannot attest as to accuracy or assume any responsibility for any errors or omissions as the information may not be complete or events may have changed.