Kleist Comments

MORNING MEATS 5/19/14
MORNING MEATS 5/19/14

CATTLE: Cash cattle last week: $144.-146.00 So., $147.-147.50 Neb. and $232.-235.00 dressed; on 90 boxed loads cut outs higher @ up. $.77 @ $225.88(c), up. $1.24 @ $216.71 (s) on moderate demand; Carcass Equivalent: $215.99 up. $.03.
COMMENTS: Cattle on feed friendly but likely not to any big deal except the spreaders on placements; my concern was marketing’s but will await the cold storage to judge; cash cattle ended the week offered, not bid and reports talked about some Nebraska sales two weeks down the road; open interest little changed, mostly rolling between June and the Aug., volume light; C-O-T report: leaned neutral (with the price action, no surprise); continues a trading affair.

HOGS:
Interior cash hogs @ dn. $.85 (w) to n/e (e), rough avg. $n/a: Pork cut outs rose $1.22 @ $113.25 (bells and loins). Lean index 05/15 @ $112.30 dn. $.43
COMMENTS: Cash hogs mixed? Maybe mostly lower as packers still contract; last week’s kill only off 1.8% when the PEDv bull-mindset looks for at least a decline of 10%; open interest rose 1500 led by July up 1350 amid light volume; June charts sitting on dangerous ground if bullish PEDv as our ‘pyramid’ is building new chambers. If one probes the long side, how about call options for now? Can always buy it higher if need be (I am neutral/negative basis USDA numbers as before). C-O-T report: leaned friendly.

Kleist Comments

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

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