Kleist Comments

MORNING MEATS 3/17/14
MORNING MEATS 3/17/14

CATTLE: Cash cattle last week: $148.-152.00, and $237-240..00 dressed Neb.; on 76 boxed loads cut outs weaker, dn. $.86 @ $240.44(c)/dn. $.37 @ $236.50(s) on light demand; Carcass Equivalent: $227.46 dn. $1.07.

COMMENTS: The discount to the cash still April’s strong point; choice beef seems stalling over its new record highs over $240.00, the area it crashed from the first time up; will the hog/pork price trade negate it?; open interest rose 4,167 even as April falls 4,700 amid strong volume; C-O-T report: really neutral. Buying breaks risk still seen likely a close under $143.00 or straight under $114.62.

HOGS:

Interior cash hogs higher @ up. $3.65(w), N/E (e) with rough avg. (w) $117.00 (w only); pork cut outs up. $2.98 @ $129.60, led by bellies up $9.00. Lean index as of 03/13 @ $110.78 up. $1.62.

COMMENTS: Cash hogs higher? Smithfield announces major plant in NC to close due to lack of hogs, also said 6-10mln. hogs infected with PEDv; weekly hog kill last week dn. only .9%? (ytd dn .2%) ; open interest rose 1,300 led by June up 4,120 amid good volume; C-O-T report: leaned negative. How high is high? Flip the coin again.

Kleist Comments

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

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