MORNING MEATS 5/10/13
CATTLE: Cash cattle so far $126.00. Neb. dressed $204.00; On 139 boxed loads cut outs: choice up. $3.48 at $204.67, select up. $.37 at $190.63 on moderate demand. Carcass Equivalent: $191.30 up. $1.62.
COMMENTS: June cattle briefly dipped sub-$120.00 yesterday and we’ll see if probing the long side has merit; basic premise is that for weeks June reflected a top in the cash was coming, and it is likely here; on the charts, watch nearby action closely, a head & shoulders bottom might be forming; I am also watching a change in the hog/cattle spreads. Open interest rose 2,032 even as June fell 7230 amid good volume.
Interior cash hogs yesterday mixed at up $1.33/dn. $1.37, rough avg. $89.60; cut outs up. $1.45 @ $89.17; lean index as of 05/08 at $90.56 up. $.78.
COMMENTS: Cash still about steady though the cut outs strongly higher courtesy of bellies In the new accounting; June futures backtracked again yesterday and for the first time in months even-to-discount cash hogs and helps justify talking a top at $93.00 as mentioned; $90.00 now psychological support. Open interest little changed in total, June/July rolling again evident, volume strong.