MORNING MEATS 6/21/13
CATTLE: Cash cattle last week $120.00 south, $121.00 north, Neb dressed $195-196.00; on 120 boxed loads cut outs: choice up. $.32 at $199.30, select up. $1.49 at $185.86 on moderate demand. Carcass Equivalent: $183.75 dn. $.14.
COMMENTS: Any bright spots? Well, a few sales reported in Nebraska yesterday at $121.50 live and $194-195.00 dressed, about steady. Weekend weather temps in the 90’s should get a few BBQ grills going but Saturday best chance of some dousing rains. Futures still blocked into their trading range but just a slight bull-lean showing up? Open interest fell 4,100 led by June/Aug. amid light volume.
Interior cash hogs yesterday mixed at dn. $.08/up $.01 rough avg. $99.73; cut outs dn. $.86 @ $105.76; lean index as of 06/19 @ $104.19 up $.32.
COMMENTS: Cash hogs steady early as end-week demand cools a bit; packer cut out loss chump-change and reflects end of week trailing of demand. Pig Crop next week will be the market’s next focus. Open interest rose 1,974 (of note: July off 2563, August up 3082) amid moderate volume. Have we topped or not? Tough to be adamant about it but we’ll use as a working thesis with a simplicity likely bear defense a move/close over $101.50 if selling rallies. Yesterday’s global financial meltdown is a big deal to pork exports and might even affect China’s pork imports Smithfield’s or not. And perhaps, High-heat coming into the midwest usually not condusive to pork demand.