Kleist Comments

MORNING MEATS 12/20/13
MORNING MEATS 12/20/13

CATTLE: Cash cattle so far $130.00 south, Neb. $130-131.00 and $207-208.00; on 80 boxed loads cut outs mixed at dn. $.47 @ $197.71(c)/up. $.40 @ $188.78(s) on light demand; Carcass Equivalent: $188.52 dn. $.69.

COMMENTS: In the end, the packer’s decided to not be “scrooge-like” and paid steady to $1.00 prices (Neb.). That and the cattle on feed report has conspired to keep futures in check and volume light side, open interest rose 1,272 led by June up 3,800 (index funds moving way out?) and Dec. off 1500. Charts in a now 13-day trading range and I do not have a new tilt here, many variables least of which the report, and will maintain defense area. By the way, just for kicks I’ll report on an article on Warren Buffet: in 2013 he made $28mln. A DAY.

HOGS:

Interior cash hogs lower @ dn. $.69(e)-dn. $1.73(w) avg.$76.00; pork cut outs dn. $2.58 @ $85.93. Lean index as of 12/18 @ $80.55 dn. $.04.

COMMENTS: Cash hogs lackluster possibly as the end of week and a holiday week come into play. Surprisingly amid rock bottom volume open interest rose 3,900 led by the June up 2,100 and the rest nominally higher. Once again the June cattle and hogs got the attention. Bottom of range remains $85.55 and will keep, for now our defense area with a side of a close over $87.00 a bear warning flag.

Kleist Comments

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

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