Kleist Comments

MORNING MEATS 6/16/14
MORNING MEATS 6/16/14

CATTLE: Cash cattle last week: $148.-150.00; on 120 boxed loads cut outs higher @ up. $.98 @ $231.87(c), up. $.12 @ $223.72 (s) on good demand; Carcass Equivalent: $218.87 up. $1.96.
COMMENTS: We start the week with cash cattle up $3-6.00; with choice beef hanging over $230.00 continuously; with charts looking bullishly robust. Add on what looked like a good weekend for BBQ’ng for Father’s Day. We will be wrapping up 4th of July bookings however. Nonetheless, we now wait to see if beef demand will be able to keep up the pace and lighter numbers keep cash cattle moving higher. Technically, the volatility suggests a likely bull defense a move/close under $142. 72 near term; upside? Most will suggest the high-end of he cash market. C-O-T report: largely neutral.
HOGS:
Interior cash hogs mixed @ dn. $.16 (W), up. $1.31 (E): rough avg. $114.75. Pork cut outs fell $2.09 @ $120.49. Lean index 06/12 @ $114.75 up. $1.56.
COMMENTS: Cash hogs might ease some as cut outs betray the packer’s margins. Nonetheless, there’s a great deal of optimism over PEDv with some saying will now happen….right now! Keep in mind 1) wild bulls trapped once in March when the sharply lower kills failed to materialize and 2) some bulls still see a 15% decline and with it a major re-setting of the premiums in the futures. I don’t like the odds buying a $16.00 premium in the August ($11.00 July even). Just make sure you define your risk. C-O-T report: neutral.

Kleist Comments

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

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