Kleist Comments

MORNING MEATS 10/2/13
MORNING MEATS 10/2/13

CATTLE: Cash cattle last week $126.00 north/south; $198.-200.00 north dressed; boxed loads cut outs——-not availiable: Carcass Equivalent: Not availiable.

COMMENTS: Government shut down leaves futures in the hands of the funds and the packers, more than ususal of course. How about the packers “voluntarily” giving, say, Dow Jones beef/live information? Right. However, big traders (cash/funds) will be under the microscope to keep an eye on them just in case they see a blind-spot opportunity. For now, same as yesterday’s technicals: near term likely bull defense a close under $126.50; rallies tough to extend (i.e. $128-129.00) on October’s premium to last week’s live. Open interest little changed in total though good rolling noted between the Oct. and Dec., volume moderate.

HOGS:

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

COMMENTS: Cash hogs called weaker as with no USDA reports to guide them, producers are dancing in the dark (sorry Bruce!) and a bit worried as mentioned.

However, no covert packer plans seem afoot with packers likely treading lightly about not giving the hog producer a fair shake with the shut down. Hence off to the technicals again: October found support in our $91-90.00 area, close under $89.40 the likely bull defense area, and if holds $92-93.00 the nearby upside objective; open interest total fell 5,800 led by Oct./Dec. off 6400 combined amid strong volume (weak longs kicked out?)

Kleist Comments

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

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