MORNING MEATS 6/26/13
CATTLE: Cash cattle last week $120.-121.50, Neb dressed $195.00; on 144 boxed loads cut outs: choice dn. $1.68 at $197.57, select dn. $.66 at $185.92 on moderate/good demand. Carcass Equivalent: $182.53 dn. $.84.
COMMENTS: Juicy t-storms up in far northeastern Il., so far power holding well. All in all, a mentioned nearby futures holding up well in that it’s holding at cash rather than 5 cents under as before; and as big traders leaving their flocks for greener grass markets (old Wall Street saying: when they are yellen’ you should be sellin’, when they are crying you should be buyin’…..who knows but I doubt this will last a much longer time that volume/open interest under hogs. And many cattle traders want to go home. However, we need to get through the immediate future first and with that, will repeat cash might not have bottomed out but futures may have. Open interest fell another 2,548 led by August off 2667 amid light-side volume. Nearby support $121-120.50, stops under $119.55.
Interior cash hogs yesterday mixed at dn. $.14/up $.59 rough avg. $99.25; cut outs up. $.77 @ $109.88; lean index as of 06/24 @ $103.66 dn. v$.33.
COMMENTS: Cash hogs seen about steady. Heat catching up with weights? I/M avg. 274 dn. 1lb. on wk., but still up 2.6lbs. on year; the piglet diarrhea disease having minimal effect though Mexico now restricts imports of U.S. pork; Fun Fact: this strain of that PED was first found in China in 2011…how did it get here then?; Pig Crop Friday; open interest rose 1,539 (of note: July off 4618/August up 4,000) amid moderate volume. Uptrend remains intact with July just ‘backing and filling’ before making new swing highs. No fresh take on a top being put in just yet.