Kleist Comments

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

CATTLE: Cash cattle last week: $146.00 So.,south, $147.-150.00 Neb. and $237.-238.00 dressed; on 125 boxed loads cut outs lower @ dn. $1.96 @ $228.38(c) dn. $3.57 @ $217.47(s) on moderate demand; Carcass Equivalent: $216.27 dn. $.86.
COMMENTS: Last week’s cash cattle boiled down to south sdy/up $1.00 to north up $%1-2.00 with dressed up $2-3.00; I wonder if Memorial Day booking are done early considering the big break in beef, especially burger beef (select); what is June trying to tell us again after a serious ‘reversal’ on the charts? And with that open interest fell 1500 led by June off 5700 and amid moderate volume; C-O-T report: leaned a bit negative. Considering $150.00 high cash and June back at $138.00 in the 2nd week of May…..have to consider it a stern bull warning flag and keeps it in a trading affair.
HOGS:
Interior cash hogs not well est. @ dn. $.46 (w) to n/e (w), rough avg. $n/a: Pork cut outs rose $.05 @ $113.13, bellies up $6/loins dn. $3. Lean index 05/01 @ $114.53 dn. $.59.
COMMENTS: Cash hogs called lower as the pork trade remains inconsistent at best; if beef bookings done no surprise if pork is done also and retailers fit to go hand to mouth. Yes, the PEDv will keep underlying support but if bullish that might have to wait until we actually see that 10-15% or more drop in kills. Tyson sees 2014 protein production only off 1% and with chicken production up 2-3%; open interest little changed in total almost seemed some July/Dec. rolling was evident; C-O-T report: neutral/slightly negative. One is forced to trade this day to day with a trusted technician.

 

Kleist Comments

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

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