Kleist Comments

MORNING MEATS 4/29/14
MORNING MEATS 4/29/14

CATTLE: Cash cattle last week: $146.00Ks., $145.00 Tx. south, $148.00 Neb. and $235.00 dressed; on 90 boxed loads cut outs mixed @ up. $.34 @ $233.17 9c)/dn. $.07 @ $221.57(s) on light demand; Carcass Equivalent: $218.49 up. $.32.
COMMENTS: The October contract made new highs yesterday over the placement numbers on the cattle-on-feed report; June makes new swing highs. I leaned friendly that report for the June’s discount (April expires today) but not buying rallies. This weather currently not conducive to BBQ’ing and the bulk of Memorial Day bookings will wrap up next week. Open interest fell 1100 led by April/June off 4,000 combined amid moderate volume. For those wanting to buy-and-hold long June the put options may be the way to go for awhile.
HOGS: ***Chicago had “Bacon Fest” over the weekend…………..
Interior cash hogs mixed @ dn. $.39 (e) to up $.63 (w), rough avg. $110.77: Pork cut outs rose $2.63 @ $117.72, on belly (up $8) then loins and hams. Lean index as of 04/25 @ $116.83 dn. $.25.
COMMENTS: Cash hogs likely firming on improved cutouts. The current correction we are in, as apposed to the March’s straight run up, centers on debate over the kills due to PEDv (talk has been 10-15% drop, current kills only off 4% and wts. keeping up tonnage. The packers seems wildly trying to force pork values up and that helps longs in the June but will June hold the higher levels? It’s been ‘iffy’ so far. Nonetheless, I stopped fighting it fundamentally (I still agree with the last USDA take on numbers) and am happy just to pull out a chart. Open interest little changed in total and individually amid light volume…I’m not the only one cautious, eh.
Hard to believe that after, way after, belly futures were murdered there is a Bacon Fest. As well as all those curious ways bacon is used in drinks, cupcakes and adult devices et al.

Kleist Comments

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

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