Kleist Comments

MORNING MEATS 4/21/14
MORNING MEATS 4/21/14

CATTLE: Cash cattle last week: $146.00 south, $148.-147.00 Neb. and $240.00 dressed; on 132 boxed loads cut outs mixed @ up. $.47 @ $226.35(c)/dn. $.20 @ $215.23(s) on moderate/good demand; Carcass Equivalent: $215.93 dn. $.52.
COMMENTS: Early indications packers did not buy much cattle last week in total and if so, this being a full kill week might not help the live price. Downside break out on the charts but the $135.00 area expands the discount to the cash and makes it hard to sell; nonetheless, need to trade the charts still with one eye on cash developments.
Open interest fell 5,160 led by April and June, volume moderate. C-O-T report: rarely have I seen such small changes in all categories. Guess that’s neutral.
HOGS:
Interior cash hogs mixed @ dn. $2.23 (w) to No/Comp.(e), rough avg. $113.00: Pork cut outs rose $1.20 @ $120.49, mostly on bellies & Lean index as of 04/16 @ $121.16 dn. $.92.
COMMENTS: Cash hogs mixed early but weather is such live movement could be better than expected. Bit of magic on the cut outs, seems to me, but we’ll take a look the
noon-er. Post Easter pork demand might not be as robust as one would like, but due to high prices. Big ham leftovers! USDA said they will issue new rules over the PEDv reporting to catch the virus quicker; some left over trade talk still looks for a sharp drop in kills this summer; June hogs bounce or bottom? depends on the numbers that are still very hard to quantify. June in the $122.00 (it’s Gold Jerry, Gold!) has good support but in here, what is ‘meaningful’? $129.25 a small gap appears on upside. I’m still believing the PC and not marrying the long side. Trade it, it’s whippy. C-O-T report: leaned friendly.

Kleist Comments

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

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