Kleist Comments

MORNING MEATS 12/27/13
MORNING MEATS 12/27/13

CATTLE: Cash cattle last week $129.-131.00, Neb. dressed $207-208.00; on 68 boxed loads cut outs mixed at up. $.07 @ $196.93(c)/dn. $1.52 @ $190.46(s) on light demand; Carcass Equivalent: $188.58 dn. $.06.

COMMENTS: The bad news: weekly beef export sales a (-) minus 7,200t led by cancellations from HK and So. Korea; the good news it was switched to 2014 sales at 20,400t (total all sources including HK, S.K.); retail meats: New Year’s steaks and Prime Rib…yummm!; open interest little changed in total (Z/G off 2,000 picked up marginally by the back months) amid light volume. Charts are in a fragile position and needs to close over T/L resistance at $134.35 and hold there. Trading affair, will be thinner than usual with the holidays so be alert.

HOGS:

Interior cash hogs @ western up $2.00-eastern (n/c) with rough avg. $76.50; pork cut outs dn. $.33 @ $85.15. Lean index as of 12/25 @ $79.28 dn. $.24.

COMMENTS: Cash hogs look fairly quiet but weak perhaps at week’s end and another short-kill week next week. Pig Crop after the close; pork weekly export sales fell 42% to 5,600t but some switching to 2014 also noted; open interest up 1,730 scattered among different months (some PC positioning?) amid very light volume. We’ll keep that over $87.00 likely bear defense for now.

Kleist Comments

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

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