Kleist Comments

MORNING MEATS 5/12/14
MORNING MEATS 5/12/14

CATTLE: Cash cattle last week: $146.00 So., $147.-149.00 Neb. and $237.00 dressed; on 131 boxed loads cut outs lower @ dn. $2.39 @ $223.26(c) dn. $.30 @ $212.21(s) on moderate/good demand; Carcass Equivalent: $214.97 dn. $1.08.
COMMENTS: Best thing I can say if buying the discount (138-137.00?) is the likely risk area of the major m/a’s at $136.66-136.55 on a close basis. Keep in mind the market is looking to ease slightly from increased supply and even with that comes record high retail prices in BBQ season. USDA 2014 beef production lowered only from 4.4% to 4.6%. Open interest rose 2800 even as June falls 11,000 (Q up 11,900, rest little higher) amid good volume; C-O-T report: leaned neutral.
HOGS:
Interior cash hogs @ dn. $3.00 (w) to n/e (e), rough avg. $n/a: Pork cut outs fell $.57 @ $110.44. Lean index 05/08 @ $114.00 up. $.10.
COMMENTS: Cash hogs weaker? The June contract losing its faith over high-loss PEDv
numbers while longs swing into July to ‘buy time’ I believe. USDA had 2014 pork production only off 2.9% vs. some touts (or brilliant) ideas of 10-15% or more; open interest little changed in total with June off 7400 and July up 6400 amid decent volume; C-O-T report: leaned friendly. $118.67-118.55 a double low of sorts and a likely bull defense.

Kleist Comments

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

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