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.
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.