MORNING MEATS 7/02/13
NOON CLOSE WED.
CATTLE: Cash cattle last week $120.-121.50, Neb dressed $194.00; on 89 boxed loads cut outs: choice dn. $.86 at $196.64, select dn. $1.37 at $185.78 on light demand. Carcass Equivalent: $181.20 dn. $1.07.
COMMENTS: There has been a significant change of market pasture that started over a week ago and that is in the basis. From 4-5cent discount then to premium is important…..’things will get better eventually’. Open interest little changed even as August drops 4,420 amid moderate volume…(long) positions being replaced rather than net liquidation. For now though, expecting still is tough resistance $123-124.00 as before; sell-off? $121.60-121.25.
Interior cash hogs yesterday mixed at dn. $.53/up $.73 rough avg. $98.42; cut outs dn. $1.01 @ $107.62; lean index as of 06/28 @ $103.01 dn. $.01.
COMMENTS: Cash hogs mixed early ahead of the holiday. Pork product trade not realistic, as is the cut out drop, due to seasonal consideration. Open interest rose 7,954 led by V/Z/G on strong volume…mini-battle shaping up and now a negative tilt to me.