MORNING MEATS 6/24/13
CATTLE: Cash cattle last week $120.-121.50, Neb dressed $195.00; on 95 boxed loads cut outs: choice up. $.09 at $199.39, select up. $.34 at $186.02 on moderate/light demand. Carcass Equivalent: $183.79 up. $.04.
COMMENTS: Let’s see now: Cattle-On-Feed report slightly negative on placements; as before, I fuse the marketing number with the cold storage stocks and this time I come up bullishly on it (near term); open interest fell 6,006 led by June/Aug. off 770 amid strong volume…..near term negative? Break out all shortcovering?…..C-O-T report leaned bullishly. Let’s see if breaks hold with a likely buy area August $120.57-120.00; likely bull defense -$119.55.
Interior cash hogs yesterday lower at dn. $.16/$1.32 rough avg. $99.00; cut outs up. $1.60 @ $107.26; lean index as of 06/20 @ $104.23 up $.04.
COMMENTS: Cash hogs steady early. Cold Storage report posts a new record high May quantity but has so for several months now and no one seems to care (one day could be a potential problem IF slackened export demand was replaced by increased freezer demand to Mask it); Pig Crop Friday; open interest fell 1965 led by July/Aug. amid light volume; C-O-T report: leaned bearish; still leaning to sell-rallies, near term resistance $100.25-100.75; bear defense new highs for now.
***Note: like beans, some believe China’s economic troubles are bullet-proof for pork imports. Won’t bet the house on that.