Kleist Comments

MORNING MEATS 8/19/13
MORNING MEATS 8/19/13

CATTLE: Cash cattle last week $123.00-$125.00; on 107 boxed loads cut outs: choice up. $1.09 at $194.39, select up. $.68 at $186.39 on light demand. Carcass Equivalent: $180.74 up. $.73.

COMMENTS: Late week trade in cash cattle was decent at $2.00 higher and takes August off the hook (on premium) and might allow a larger October premium. Open interest rose 5,074 even as Aug. fell 1512 (Dec. up 3,190) amid moderate/good volume……mini-battle. October also had a curious chart formation that allows several interpretations. For now though, we’ll keep with better beef demand through Labor Day, Back to School and a late season BBQ’ing jam. $126.27 close under, the likely bear defense if buying breaks.

HOGS:

Interior cash hogs yesterday lower at dn. $2.28/$2.35 rough avg. $96.00; cut outs up. $1.27 @ $103.23; lean index as of 08/14 @ $102.56 up. $.07.

COMMENTS: Cash hogs called under pressure with ample supplies and a generally weak pork trade. Open interest fell 6,259 led by Aug./Oct. amid light volume (longs out of cattle into hogs?). Might be time to start selling rallies for trading turns and short hedges on position trades.

Kleist Comments

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

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