Kleist Comments

MORNING MEATS 5/29/14
MORNING MEATS 5/29/14

CATTLE: Cash cattle so far: $143.00 So., $143.00 Neb. and $232.00 dressed; on 163 boxed loads cut outs higher @ up. $1.19 @ $234.31(c), up. $1.50 @ $224.15 (s) on good demand; Carcass Equivalent: $217.69 up. $.50.
COMMENTS: Cash cattle seem to be leaning lower and indicates live supply just over beef demand? The holiday weekend clearance had to be very good considering the beef movement but seasonally beef demand starts to falter and packers know that also. Forgot to mention: that “Pink Slime” hamburger that many groups were up in arms about making a come-back. Why? Cheaper price my friends. Every thing begins and ends with money. Weekly export sales delayed until tomorrow. Open interest fell 1550 led by June off 3600 amid light-side volume. If one probes the long side in this trading affair, I might be comfortable in the $135-134.00 area near term only, though that horse left the barn this morning; close over $136.85 (major m/a’s) a positive.

HOGS:
Interior cash hogs @ dn. $.37 (w) to up $.03 (e), rough avg. $106.00. Pork cut outs rose $1.10 @ $117.28 (primals). Lean index 05/27 @ $110.98 dn. $.24.
COMMENTS: Cash hogs lower? Our major farm radio AG spot here in Chicago said another out break of PEDv happened in Indiana, was called a “coming back” of the disease, and perhaps could stabilize this decline. Open interest fell 3100 led by June/Aug. amid decent volume (liquidation then confirmed). The chart a mess: seemed like the July opened right at their major m/a’s then fell apart under them. A close back over them at $122.63-122.97 needed to ‘right’ the decline and look for a consolidation. If bottom picking lately, it’s been expensive. However, if PEDv comes back in a big way the market will head straight up for awhile. Again, call options.

Kleist Comments

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

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