MORNING MEATS 6/18/13
CATTLE: Cash cattle last week $120.00 south, $121.00 north, Neb dressed $195-196.00; on 118 boxed loads cut outs: choice up. $1.66 at $201.19, select up. $.24 at $183.79 on light movement. Carcass Equivalent: $186.74 dn. $.47.
COMMENTS: August cattle held the low end range…by a hair but did hold it. I’m a bit surprised beef has held up relatively well (considering its historic price) which might mean 1) retail demand better than anecdotal reports and 2) pork priced might have climbed enough to make beef a bit competitive. Nonetheless I’ll keep to a trading affair bias for now as the charts demand. Open interest little changed in total and individually amid moderate volume (day traders!).
Interior cash hogs yesterday mixed at up. $1.74/dn. $1.27 rough avg. $99.70; cut outs up. $.22 @ $103.80; lean index as of 06/14 $102.49 up $1.23.
COMMENTS: Cash hogs seen steady-ish with a bit of uncertainty over pork demand and as the major interior markets all quoted sub-$100.00. Cash topping out? We’ll see but the July chart is asking the same question and combined a valid reason to probe the short side on rallies for trading turns me thinks. The
C-O-T report also rings in my ear. Not sure how to read this: USDA reports another 46 cases of that pig disease that hurts piglets at end week of June 3rd….USDA said expected to impact hogs later in year yet back months futures non-plussed by it all. Open interest rose 2,331 (somebody selling it) amid light/moderate volume.