MORNING MEATS 04/19/13
CATTLE: Cash cattle so far $125.00 from Monday; On 144 boxed loads cut outs: choice dn. $.54 at $190.79, select dn. $.24 at $184.25 on moderate demand. Carcass
Equivalent: $181.53 dn. $.31.
COMMENTS: April futures now acting as if cash cattle will remain at the $125.00 level when bulk trade develops?; Cattle-On-Feed this afternoon not effecting spreads much (say, placements vs. marketing’s); McDonald’s 1Q U.S. sales fell 1.2%, global sales off 1.2%…the clown is not amused; open interest little changed amid moderate volume. No opinion change.
Interior cash hogs yesterday lower at dn. $.24/$.60, rough avg. $76.00; cut outs up. $.10 @ $83.29; lean index as of 04/17 at $81.59 dn. $.10.
COMMENTS: Cash hogs about steady. Hype time? While not specifically saying more pork exports, the U.S. Grains Council says China consumers to switch from poultry to pork or fish; where’s the U.S. Export Meat Federation when we need them? I need a good rally to catch up on new summer hedges. Retail featuring using various gimmicks to see where the consumer sweet spot is from BOGO to major bulk buying. Open interest rose 2,130 led by Q/V/Z up a combined 2,054 amid light-side volume. No opinion change.