MORNING MEATS 5/01/13
CATTLE: Cash cattle last week $128-130.00. Neb. dressed $204.00; On 124 boxed loads cut outs: choice up. $1.60 at $196.39, select up. $1.82 at $188.04 on moderate demand. Carcass Equivalent: $186.03 up. $.84.
COMMENTS: Sharply higher beef but June’s discount on-plussed by it all as usual. Again, I suspect beef demand concern and that June typically the worst month for beef demand as it is keeping new buyers ultra-cautious, and no funds are not in an investment mode here as mentioned. In other news: Wells Fargo survey finds “food dollars are limited” in this economy; ADP April job growth private sector only 119,000hd. vs. 155,000 est.; open interest rose 2,498 led by August up 3,303 (hedges anyone?) amid moderate volume. No opinion change.
Interior cash hogs yesterday unchanged/higher sdy./up $2.40, rough avg. $83.00 ; cut outs dn. $1.64 @ $85.69; lean index as of 04/29 at $83.66 up. $1.04.
COMMENTS: Cash hogs seen firm in a jumble of snow, rains and plantings affecting various parts of the country; I/M wts. rose .9lbs. to 278 and up 1.9lbs. on year…bit lighter numbers meeting a bit higher tonnage? Futures/cash trying to narrow further but the June still at a near $10.00 premium to the interior presents a problem for speculative buyers perhaps. Cash loins tumbled late yesterday and sometimes can be a bell-weather of things to come losing the pork chop crowd. Nonetheless, June so far only finding resistance at/over the $93.00 area: possible topping action or a pause? Close under $90.75 a bull warning flag.