MORNING MEATS 5/03/13
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 $124.55). Open interest fell 2,842 led by June off 7621 amid good volume. Psychological support perhaps on unemployment dropping to 7.5% vs. 7.6% prev.
Interior cash hogs yesterday n/c./dn.$.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.