MORNING MEATS 6/28/13
CATTLE: Cash cattle last week $120.-121.50, Neb dressed $195.00; on 134 boxed loads cut outs: choice up. $.87 at $197.78, select up. $1.11 at $187.62 on moderate demand. Carcass Equivalent: $182.35 up. $.44.
COMMENTS: Rally the futures to +cash and you get 30 deliveries. The market still awaits the cash trade, possibly those few in Iowa yesterday at steady will spread over but it is a holiday kill week next week so……August cattle I still look for resistance to hold in the broad area of $123-124.00 for now and looking for a good correction to probe long side. Open interest little changed but not a net loss as M/Q@ drops 4400 and V/Z rose 2900 (rest slightly higher) amid moderate volume.
Interior cash hogs yesterday higher at up. $.47/$.80 rough avg. $99.75; cut outs dn. $2.05 @ $108.10; lean index as of 06/26 @ $103.42 dn. $.08.
COMMENTS: Cash hogs steady early. Seems it only bothers me dept.: yesterday midday pork cut outs up $1.87 led by bellies up $10.00 (up $5.00 prev. day), late wire cut outs fell $2.05 led by bellies down $15.00…two day swing in belly value $30.00. Outstanding commerce. Anyway, end of month/quarter might have seen funds goose-up long positions as open interest rose 5,864 even as July drops 5,864 on moderate/good volume. Dec. scored the most at 3,275. Upside arbitrary in futures, $103.00 July? Downside at $100.35-99.70 now important support. August $98.10-97.37. By the way, hearings begin in Washington next month on the Smithfield deal and pig crop this afternoon.