Kleist Comments

MORNING MEATS 3/24/14
MORNING MEATS 3/24/14

CATTLE: Cash cattle last week: $150.00 south, $152.-152.50 Neb. and $241-242.00; on 76 boxed loads cut outs lower @ dn. $1.41 @ $240.15(c)/dn. $1.11 @ $233.66(s) on light demand; Carcass Equivalent: $223.75 dn. $.70.

COMMENTS: April cattle looks toppy with that ‘double high’ at $146.82-146.92; currently around its 10-20 day m/a’s at $144.90-144.09; close under $142.70 still needed to negate what has been a bullish, long time trading affair; cattle on feed report negative from placements to marketing’s; cold storage neutral?; cash cattle ends last week up $1-2.00 live south, Neb. steady/up $.50 but their dressed up $1-2.00.

HOGS:

Interior cash hogs higher @ up. $2.53(w),to up $2.63 (e) with rough avg. $124.50: Pork cut outs up. $.37 @ $130.60. Lean index as of 03/20 @ $120.37 up. $1.91.

COMMENTS: Cash hogs higher? Why not? Article I came across said Canada that’s usually non-plussed with our Pig Crops says they are concerned over our ‘deadly virus’, says U.S. lost 6% of pigs; says bacon users should ‘take note’ for the summer; quotes some U.S. analyst as saying we ‘ain’t see nothing yet’ for pork prices…..now me, are we reaching a panic high in here or what? Cold storage report (up 6%) negative especially bellies but of course ‘we’ll need every last pork cut’!!! to weather the coming summer hog scarcity. Open interest little changed even as April falls 1555 amid light-side volume; C-O-T report: leaned bearish. I have no idea where the highs are. Or even what’s proper risk for any new longs, if that swing that way.

Kleist Comments

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

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