Kleist Comments

MORNING MEATS 8/16/13
MORNING MEATS 8/16/13

CATTLE: Cash cattle last week $121.00-$123.00; on 91 boxed loads cut outs: choice up. $.95 at $193.30 select up. $1.01 at $185.71 on light demand. Carcass Equivalent: $180.01 up. $.46.

COMMENTS: Late week trade in cash cattle, or last minute trade this afternoon. The waiting is a killer and addressed by open interest yesterday: little change in total and individually amid light volume. Nonetheless, trade assuming higher cash cattle prices and if so then we’ll see how the charts close for the week. Deliveries 12.

HOGS:

Interior cash hogs yesterday mixed at dn. $.9 2/up $2.89 (e) rough avg. $98.00; cut outs dn. $.71 @ $101.96; lean index as of 08/14 @ $102.56 up. $.07.

COMMENTS: Cash hogs still seeing some area diversity on packer demand needs. Yesterday’s sharply lower reported cut out was tempered a bit from dn. $3.00 to only dn. $.71 as the shell game moves on. One report said seasonally there’s a “wall of pork” coming and big-sized fund long positions at risk for group liquidation possibly (hey, after the 8400 open interest rise recorded Wed. I remarked a major battle at hand, likely commercial vs. fund). Open interest rose 2,294 led by Oct. up 1336 amid light-side volume. I abandoned the ‘break out’ yesterday and for now looking neutral with a tilt to hedges shortly.

Kleist Comments

This is John Kleist, of Kleist Ag Consulting.
Questions? Email me: johnwkleist@sbcglobal.net

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