MORNING MEATS 7/5/13
CATTLE: Cash cattle last week $119.00 south; on 142 boxed loads cut outs: choice up. $.63 at $197.73, select up. $1.85 at $188.47 on moderate/good demand. Carcass Equivalent: $181.72 up. $.25.
COMMENTS: Well, most of the Midwest enjoyed excellent grill weather yesterday, though rains move in end-weekend to next week; U.S. May beef exports rose 4.3% for muscle meats, up 2.7% for total beef and variety meats (mostly due to Japan up 74% individually and accounted for 28.7% of total volume), however year to date is still off 3% on year (April was off 5% on yr.)…be nice to see a string of monthly increases and not a one-off month. Ope3n interest little changed in total, of note August off 2898 with Oct. up 1537 and rest up nominally, volume moderate. I have been friendly awhile now but see a head-butt remaining at the $123-124.00 as before. Weekly export sales: fell sharply to 12,400t vs. 20,000t wk. but led by Japan again at 5,400t.
Interior cash hogs yesterday higher at up. $.75/$1.31 rough avg. $99.50; cut outs dn. $1.40 @ $104.66; lean index as of 07/02 @ $103.21 up. $.01.
COMMENTS: Cash hogs steady early as post-holiday needs addressed. May U.S. pork exports fell 4% muscle, 3.3% overall, year to date off 9% (good thing we can sell it to the freezer). Open interest rose 4,217 even as July fell 1,099 amid moderate volume…..’mini-battle’ heating up eh? July locked into the lean, the August on a slippery slope with support $96.17-95.55, close under $95.17 would have some importance to extend the downside. By the way, Wednesday’s early cut outs quoted at down $5.69 resurrected sharply to ‘only’ down $1.40 (Enron accounting again?). Weekly pork export sales fell sharply to 10,000t vs. 18,600t prev. week.