Kleist Comments

MORNING MEATS 10/15/13
MORNING MEATS 10/15/13

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: New contract highs after 2 negatives (So.Korea and major Chigo. grocery chain closing) impressive, though from a demand standpoint I still suggest an extended BBQ season helped quite a bit. Charts improved appreciably and total open interest rose 3784 even as Oct. fell 1651….only MIA was volume. Nonetheless the fund ‘switch’ looks alive and well. I have serious doubts cash cattle can get to or stay over say $135.00 an as such I have to keep a ‘trading affair’ label on the December (keep in mind Christmas

gift buying starts next month about the time beef price increases will be jumping in. For now, nearby (meaningful) support $132.15-131.65 (yes I know over $1.00 under current levels but keeping conservative. Cattle-On-Feed Friday, estimates later.

HOGS:

Interior cash hogs yesterday not available;

COMMENTS:Still very evident the switching between long hogs and into long cattle as mentioned; with that December hogs in a delicate dance in its low end of a broad range (at $85.90-85.50); open interest fell 1,679 led by October off 1,446 amid VERY light volume; nearby resistance $87.32-87.75, close over $88.00 likely bear defense and would stabilize the decline. Cash hog rumors are steady/weaker under the ‘new’ packer models

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.