Kleist Comments

MORNING MEATS 5/03/13

MORNING MEATS 5/03/13
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CATTLE: Cash cattle so far $128-131.00. Neb. dressed $206-207.00; On 107 boxed loads cut outs: choice up. $1.09 at $200.58, select up. $.81 at $190.64 on light/moderate demand. Carcass Equivalent: $188.19 up. $.64.

COMMENTS: Yesterday’s morning comments about in line with the current circumstances of June cattle’s discount vs. cash cattle. Hence still keeping a trading affair for the June and yesterday’s technical points then only need adjustments (i.e. new upside objective should be April 1 high at $124.55). Open interest fell 2,842 led by June off 7621 amid good volume. Psychological support perhaps on unemployment dropping to 7.5% vs. 7.6% prev.

HOGS:

Interior cash hogs yesterday n/c./dn.$.45, rough avg. $85.70; cut outs up. $.82 @ $87.18; lean index as of 05/01 at $85.54 up. $1.00.

COMMENTS: Cash hogs steady early. I am amazed if not ignorant to the new USDA reporting as midday belly values were quoted off $14.75 and yet late wire quoted up $5.24 and cut outs also turned around with it basically; and the eastern corn belt interior ended on ‘no comparison’ at $84.08. Anyway, there seems light congestion up here around the $93.00 in the June but forming a top seems premature. Buy break tilt remains. New jobs data better than expected and previous two months revised strongly higher as well. Curious.

Kleist Comments

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

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