Kleist Comments

MORNING MEATS 2/13/14
MORNING MEATS 2/13/14

CATTLE: Cash cattle last week: $140.00/141.00,and $225.00 Neb.; on 216 boxed loads cut outs lower at dn. $1.09 @ $208.05(c)/dn. $.53 @ $207.03(s) on good demand; Carcass Equivalent: $200.60 dn. $.53.

COMMENTS: Weekly beef export sales jumped to 16,600t led by Japan at 7,300t, So.Korea 2,400t, H/K 2,300t and Mx. 2,000t. Combined with the rather large domestic usage yesterday, prices might have hit the sweet spot for buying our way back into consumption. As such, speculatively I will turn aside (flat) for a bit. Open interest rose 2,400 led by December (?) up 1,275 amid moderate volume. Will the demand last is the question.

HOGS:

Interior cash hogs higher @ up. $.29(e)/$.22 (w) with rough avg. (w) $82.25; pork cut outs up. $1.91 @ $92.95, led by jumps in bellies and hams. Lean index as of 02/10 @ $84.77 up. $.23.

COMMENTS: Cash hogs look firm early but moderating weather might pressure. Demand? Weekly pork export sales rose to 12,600t led by Mx. 6,800t and Japan 2700; plus total pork loads yesterday were the best in a couple weeks…retailers making their move finally? And I understand Ohio’s Ag Dept. reported a different strain of virus distinct from PEDv at 4 farms in Ohio between January and early Feb. Not sure I wish to fight the psychology of this disease…premium or not. Hence like the cattle I am turning aside (from bearish near term) and will be neutral in here. Open interest little changed even as G/M falls 2,300 amid decent volume.

Kleist Comments

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

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