Kleist Comments

MORNING MEATS 10/3/13
MORNING MEATS 10/3/13

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

COMMENTS: COWS HELD CAPTIVE……..DAY 3.

Private sources, meaning feedlots in general, reported that $123.00 bids mentioned yesterday. Even so, October cattle are seemingly ‘non-plussed’ by it considering the premium. What gives? October suggesting a steady cash price for now anyway. Weather still holding up for our late season BBQ’in and will see if beef demand holds with it as before. Hence, I’ll keep the price perimeters outlined the last couple days intact. Open interest fell 1,355 led by Oct. off 2,325 amid light volume. Wonder if the U.S. dollar of late helping beef exports through the shut down?

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: Cash hogs privately called weaker in general but futures acting independent of that currently, eh? If so, the pork might be holding up better than expected still and the bearish Pig Crop failed to damage the charts so far. The CME also says will develop a ‘fair settlement’ formula for the October’s 14th expiry. Would exit October longs best can, especially $92-93.00 range but as mentioned keeping a leery eye on the December’s chart formation…..suspiciously bearish leaning in here. October’s time frame might be the end of the extra ‘grillin’ weather. One thing: IF expansion crops up gilts will be held back and that tightness in numbers could be extended. Need a spy in their bedrooms! Open interest fell 2,037 led by Oct. off 1,962 amid very light volume. Be wary of using market orders.

Kleist Comments

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

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