Kleist Comments

MORNING MEATS 1/6/14
MORNING MEATS 1/6/14

CATTLE: Cash cattle last week: $137.-139.00, Neb. dressed $217-218.00; on 96 boxed loads cut outs higher at up. $1.86 @ $202.41(c)/up. $1.33 @ $197.38(s) on moderate demand; Carcass Equivalent: $194.70 up. $2.19.

COMMENTS: Now that we have record high cattle prices, weather a likely factor for the week, after which temps. rise sharply (40, yea!). Currently where I’m at a (-40 to 50) wind chill. The record high prices also hits the air waves: a major radio station broadcast included calls for much higher retail beef; a wire service article already interviews consumers that have switched to pork or chicken. Hey, just a warning flag that eventually perhaps cattle/beef demand will hit a speed bump. New contract highs Feb. cattle accompanied by open interest rising 2,330 even as Feb. dropped 2836 amid moderate volume; C-O-T report: neutral. Nearby support $135.60-134.85, warning flag under $134.50 (10-day). Hedgers look here and at over $137.00 both G and J in options.

HOGS:

Interior cash hogs lower @ dn. $.56 (e)/$.81 (w) with rough avg. $77.30; pork cut outs dn. $.62 @ $82.66. Lean index as of 01/02 @ $80.07 up. $.32.

COMMENTS: Cash hogs tough call. Weather is extreme again, though it didn’t help Friday too much. Open interest little changed in total even as Feb. fell 2484 amid moderate volume; C-O-T report: leaned bullish. Charts look better than they have for awhile after the big bounce seen last week off new swing lows. Puts us in a buy-break mode for now. Nearby support $85.97 (10-day)- $85.50, 20-day m/a at $86.88. Negative beef publicity bullish pork demand?

Kleist Comments

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

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