MORNING MEATS 6/19/13
CATTLE: Cash cattle last week $120.00 south, $121.00 north, Neb dressed $195-196.00; on 149 boxed loads cut outs: choice dn. $.95 at $200.24, select up. $.36 at $184.39 on moderate movement. Carcass Equivalent: $184.24 dn. $.50.
COMMENTS: Look like the cattle pit will be content to stay within its established ranges with no fresh news to deal with. The market also has purpose in ‘positioning’ ahead of Friday’s Cattle-On-Feed report (see closings for avg. estimates); open interest fell 1,464 led by June and August off 2700 combined amid very light volume…volume an indication of boredom (beware sleepy markets?). Basing still $119-118.00 for the August but so far only in the context of a trading range (cannot yet justify it fundamentally but I tend to lean that way). Cold Storage report also Friday.
Interior cash hogs yesterday lower at dn. $.14/$.66 rough avg. $99.30; cut outs up. $1.90 @ $105.70; lean index as of 06/1 7 $103.29 up $.79.
COMMENTS: Cash hogs should be strong as the packer put value on most major cuts and jacks up the cut outs again. As such, July hogs pops over $100.00 again. As such, probing the short side might get unprofitable. Cold Storage seen record large again and surprised the lack of demand (exports?)…then again, that ‘extra’ supply being hidden away. Open interest little changed in total, of note June/August off 5,000 combined, volume light-side.