MORNING MEATS 6/17/13
CATTLE: Cash cattle last week $120.00 south, $121.00 north, Neb dressed $195-196.00; on 96 boxed loads cut outs: choice dn. $1.10 at $199.53, select dn. $.58 at $183.79 on light movement. Carcass Equivalent: $185.21 dn. $.51.
COMMENTS: Cash cattle weaker than expected last week and this week little to go on if looking for an improvement; open interest rose 2,564 amid light-side volume; C-O-T report looked neutral; weekend weather generally was good, perhaps some extra beef was tossed on the grill? August in an area where if a base is being formed it has to work now. Technically, August looks to test contract lows at $117.82.
Interior cash hogs yesterday mixed at up. $.35/dn. $.60 rough avg. $99.20; cut outs up. $3.89 @ $103.58; lean index as of 06/12 $99.77 up $1.01.
COMMENTS: Cash hogs steady? You bullish? Cut outs rise nearly $4.00 led by bellies up over $10.00 (hate this new accounting). Bearish? I/M hogs fall nearly $5.00 Friday. In other news: Oscar Meyer said sold out of its special Father’s Day gift: “Luxury Bacon Box Set” that came with either a money clip, a pocket knife or a bacon shape cuff links. And a heart monitor. Large stock holder says Smithfield was underpriced, sold at $34/share and should be $44-55.00 if sold by parts; open interest rose 2,254 amid good volume and the C-O-T report leaned decidedly bearish…..might be indicating a top and I’ll take a sell rally stance near term with the likely bear defense a move/close over $100.15.