Kleist Comments

MORNING MEATS 5/15/14
MORNING MEATS 5/15/14

CATTLE: Cash cattle last week: $146.00 So., $147.-149.00 Neb. and $237.00 dressed; on 176 boxed loads cut outs lower @ dn. $1.53 @ $225.08(c), dn. $.03 @ $215.6(s) on good demand; Carcass Equivalent: $215.96 d. $.56.
COMMENTS: Cattle on feed placements seen lower which would effect the October contract most (?) but that (and Dec.) at a premium to the summer months and if we cannot buy the summer yet, why the back months? Bear spreads already in play. This market very undecided even as open interest steps higher… though my suspiciousness leans to commercial selling. Hey, on a chart it’s simple? If buying the discount, if buying into the hat has been hog talk of sharply lower summer supplies, etc. the major m/a’s at $136.75-136.67 a likely bull defense on a close under. Weekly beef export sales rose 2% to 12,700t led by Japan at 3,500t (overall no big deal); open interest rose 1900 even as June fell 5500 amid moderate/good volume.

HOGS:
Interior cash hogs @ dn. $.55 (w) to n/e (e), rough avg. $n/a: Pork cut outs rose $1.36 @ $110.41 (bells and butts). Lean index 05/13 @ $112.91 dn. $.641
COMMENTS: Cash hogs mixed? I am not necessarily bullish (I believe the USDA numbers) but I weep for the all the false upsides June hogs have been making for the bulls. I seem to have invented a new chart formation: the Pyramid and it’s currently back to its base. If the market dies we’ll name it “King Tut”. Weekly pork export sales fell 17% to a modest 8,000t. led by Mexico at 3,700t; open interest rose 2,680 even as June fell 4500 (N/Q up 5900 combined and indicates someone taking a bearish bet from the bulls), volume good. -$118.55 on the downside and the major m/a’s on the upside at over $125.00 the broad major perimeters. Tough deal.

Kleist Comments

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

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