Kleist Comments

MORNING MEATS 4/24/14
MORNING MEATS 4/24/14

CATTLE: Cash cattle last week: $146.00 south, $148.-147.00 Neb. and $240.00 dressed; on 102 boxed loads cut outs higher @ up. $1.43 @ $232.64(c)/up. $1.05 @ $220.67(s) on moderate; Carcass Equivalent: $218.38 up. $.65.
COMMENTS: Logically the sharp increase in packer cut outs should translate into higher cash cattle. Not sure we’re trading logic in here. But the futures, to a degree, are. Weekly beef export sales fell 18% to 18,000t led by Mexico at 7,200t, a bit unusually large; C-O-F Friday will influence trading; $136.35 close over could spark better gains especially with the discount but still a tough decision just to buy a discount here…by June cash cattle might unravel. Perhaps the hog market’s new reflection over PEDv will be the best support near term.
HOGS:
Interior cash hogs mixed @ up. $1.27 (w) to Not/Est.(e): Pork cut outs fell $.10 @ $115.97, mostly on mixed trade. Lean index as of 04/22 @ $117.69 dn. $.79.
COMMENTS: Cash hogs mixed again for the early call. More good news for the market after the Cold Storage reports re-emphasis over PEDv: Weekly pork export sales rose 77% to 15,100t led by (again) Mexico at 4,100t. Remember the good old days of “hogs hate a gap”? Well, yesterday’s rally seemed to ignite that talk again: it sits at $129.35. I am not sure this rally is a new move to new highs or mainly a corrective last gasp.
By the way, those rascally Chinese that bought Smithfields changed the name of their company from an overtly Asian name to a more western civilized one of simply “WH Group”. Or as some I tell of the transaction simply say….”W*hat the H*ell?”… To the Chinese?

Kleist Comments

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

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