Kleist Comments

MORNING MEATS 12/26/13
MORNING MEATS 12/26/13

CATTLE: Cash cattle last week $130.-131.00, Neb. dressed $207-208.00; on 113 boxed loads cut outs higher at up. $.17 @ $196.86(c)/up. $1.46 @ $191.98(s) on light/moderate demand; Carcass Equivalent: $188.54 dn. $.01.

COMMENTS: Now being neutral we can look to see if the current Feb. chart consolidation has a breakout or if I see something more forward looking. Post New Year’s beef demand will be tricky and even now looking with a jaundiced eye the sharp narrowing of the choice/select beef spreads. Open interest little changed amid little volume. Close in Feb. over T/L resistance ($134.35) might trigger some technical buying. Typical year end lack of news. However, Friday’ Pig Crop could have an impact here.

HOGS:

Interior cash hogs @ I/m $74.33(n/c), western of $3.42-eastern (n/e); pork cut outs up. $.40 @ $85.48. Lean index as of 12/20 @ $79.73 dn. $.73.

COMMENTS: Cash hogs tough to pin down in the interior, I try to imagine what all the lack of quotes due to “confidentiality” really means. Pig Crop tomorrow and as before, past PC’s have been a debate over the minutia of a % of a % in differences. Open interest little changed amid little volume. Feb. makes a new swing low at $85.37 and $85.00 and under might provide obvious support. Not here yet but at some point look for a rally that is caused by the PED perhaps. Until then we’ll watch for regular fundamentals. Likely bear defense move over $87.00 for now.

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.