MORNING MEATS 6/25/13
CATTLE: Cash cattle last week $120.-121.50, Neb dressed $195.00; on 107 boxed loads cut outs: choice dn. $.14 at $199.25, select up. $.36 at $186.58 on moderate/light demand. Carcass Equivalent: $183.37 dn. $.42.
COMMENTS: Having some power outages, excuse the delay.*******
Well, now that we have cash and futures roughly in line with each other, life is easier, right? Not really just yet. Next week is a short kill week for the holiday and seasonally beef demand weakens after 4th July. Hence some talk of $1.16-1.17 live (Last year low $113.00) as a possible bottom this summer seems in the ball park. Yet August might have bottomed in the $117-118.00 area as we’ve been talking about for several weeks now. If so indicates futures to go/stay premium. So we’ll let it soak a bit and keeping to a trading affair market for now. Open interest fell 5,175 led by Q dn. 4092 and June off 1054 amid moderate volume.
Interior cash hogs yesterday mixed at dn. $.92/up $.81 rough avg. $99.25; cut outs up. $1.09 @ $108.95; lean index as of 06/21 @ $103.99 dn $.24.
COMMENTS: Cash hogs steady early. Amazing pork market with the ‘value swings’ rather large, this time (and has been usual) to the upside. Hot weather might cool off pork demand and post-holiday demand weakens as well. But tried to call a top a top once already and proved early at best. Pig Crop Friday not likely to a surprise though corn prices and live prices have been much better. Open interest little changed even as July falls 1400 amid good volume.