Kleist Comments

MORNING MEATS 10/14/13
MORNING MEATS 10/14/13

CATTLE: Cash cattle last week $128.00 (up $2.00) north/south $198.-200.00 dressed (sdy.); boxed loads cut outs——-not available: Carcass Equivalent: Not available.

COMMENTS: Not a problem apparently as a major Chicago grocery chain set to exit the area by 1stQ 2014, other mostly grocery type deals appear in the works with them. Even so, the cash cattle market held better than expected especially the south; even with no USDA beef quotes one could assume beef has been acting very well; weather still favorable for grilling but temps are turning more seasonal and chilly….frost warning here 1st of the year overnight; open interest rose 2,718 led by the J/M contracts amid more favorable volume; On Friday, once again cattle open interest rose solidly over hogs and volume in cattle 20,000 over hogs. And its shows up on the charts with December cattle posting a new high Friday while bullish December hogs have folded (for now anyway); nearby support $131.85-131.32 with a likely bull defense a close under $130.85 for trading turns. Be wary of possible whipsaws as part of the rally feeder cattle-inspired.

HOGS:

Interior cash hogs yesterday not available, last rough avg. $89.50; cut outs n/a; lean index as of 09/27 @ $96.30, no longer available.

COMMENTS: Open interest little changed in total even as V/Z drops 2,600 amid light volume. The ‘action’ clearly has shifted back to the cattle/beef and with cattle open interest and volume solidly over hogs. I bring this up obviously as chart formations have changed and cattle/hog spreading might be in the cards for awhile longer. China says time the world “un-Americanizes” the financial markets…its come to this then; by the way, the sneaky USDA Ok for China to export cleaned chicken back FROM the U.S. could find it anywhere since not covered the COOL labeling…. hope it’s not in baby food. Anyway, December hogs likely sell area $87-88.00 and a likely bear defense a close over $89.00.

Kleist Comments

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

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