MORNING MEATS 5/08/13
CATTLE: Cash cattle last week $128-131.00. Neb. dressed $206-208.00; On 107 boxed loads cut outs: choice up. $.93 at $201.19, select up. $.65 at $190.26 on light demand. Carcass Equivalent: $189.68 up. $.46.
COMMENTS: McDonald’s reports global sales fell .6% in April under “challenging” macro environment conditions from economies to bird flu: reportedly Ronald pulls out his McBat on sales reps; open interest fell 1,918 led by June off 8045 with August rising 5011, volume strong. It’s nice being exactly correct the market, but it’s a trading affair and an easy victory; how’s about an ‘official’ probe of the long side in the $119.00’s June with a likely bull defense a new contract low? Otherwise, just trade the darn thing until something changes.
Interior cash hogs yesterday higher at up $.76/$2.96, rough avg. $88.50; cut outs dn. $.86 @ $86.56; lean index as of 05/06 at $88.80 up. $.97.
COMMENTS: Cash hogs higher? After an “unquoted, confidentiality” issue early yesterday, I/M hogs end up near $3.00 higher in the afternoon. As Yogi Berra might have said, we cannot see through all this transparency. I/M wts. 276.8 dn. 1.2lbs. on week, up .1lb. on year; China bird flu deaths to 31, infected to 129; open interest little changed in total though of note large June/July rolling
evident, volume good. OK, I/M about $90.50 yesterday and June still cannot hold over $93.00; might still be a topping indicator and even if it does, secondarily still forming a top?