Kleist Comments

MORNING MEATS 10/9/13
MORNING MEATS 10/9/13

CATTLE: Cash cattle this week $126.00 (steady) north/south live so far; $198.-199.00 north dressed (dn. $1-2.00); boxed loads cut outs——-not available: Carcass Equivalent: Not available.

COMMENTS: Report overnight stated that South Dakota may have lost 00′s of 000′s of cattle to the weekend snowstorm (5% of state population; state only 4% of national population) but still noteworthy; South Korea bans some U.S. beef imports after finding a meat growth drug in 22t’s of Swift Beef (owned by JBS USA), also bears watching; open interest rose 2,375 led by December up 1,062 (hedges or beef ban?) amid light volume; December cattle charts looking much better than early last week’s but needs to take out its at $132.60 swing high; meaningful support to $131.32, likely bull defense a close under $130.85 for now. Treating as a trading affair still, steep premium keeping e cautious.

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 called lower on some trade talk but ? New packer buying methodgy not quite evident; December hogs, like Dec. cattle, turned their near term charts around (shoiuld have seen a downside breakout) and December hogs at a discount basically still on current cash ideas but we will keep in mind 1)seasonal down overdue, 2) Pig Crop said 1% more market hogs for the next couple months; but what IF South Korea bans more U.S. beef imports? Open interest no guidepost with it down 3,231 but all October at off 3,764 amid light/moderate volume; December ‘double high’ at $88.90-90.00 a likely bear defense if probing the short side near term.

Kleist Comments

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

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