Kleist Comments

MORNING MEATS 3/27/14
MORNING MEATS 3/27/14

CATTLE: Cash cattle this week: $150.-152.00 south, $152.-154.00 Neb. and $245.00 dressed; on 102 boxed loads cut outs mixed @ up. $.51 @ $241.75(c)/dn. $1.14 @ $233.31(s) on moderate demand; Carcass Equivalent: $225.28 up. $.65.

COMMENTS: The ‘action’ all in the live and dressed beef as April futures still content in a range and at a discount to the live market. Telling us anything? Weekly beef export sales fell 18% to 13,310t (southeast Asia and Mexico mainly) and may indicate prices are rationing demand here. Open interest rose 3,554 even as April falls 1669 amid moderate volume……mini-battle in here? Best to play the charts still with one jaundiced eye on the fundamental. In here we have the 10-day at $145.05 and the 20-day at $144.60.

HOGS:

Interior cash hogs mixed @ dn. $2.20 (w) to Not/Est. (e): Pork cut outs up. $.76 @ $131.23. Lean index as of 03/24 @ $125.04 up. $2.47.

COMMENTS: Cash hogs? Can go either way, cut outs ‘lean’ firmer?

A walk on the chart shows a correction of $6.80 downward and from yesterday’s low a reversal of $5.00….$12.00 swing in two days. You’d think the pork belly pit was still open. Otherwise, I have no problem with it and if buying towards it swing low, a possible defense under its 20-day at $118.16 but have deep pockets; weekly pork export sales rose 26% to…..6,600t led by Mx. at 3400t of it….no big deal; open interest fell 4,800 led by the April amid good volume. Pig Crop coming up tomorrow to keep trading volatile?

Kleist Comments

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

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