Kleist Comments

MORNING MEATS 8/21/14
MORNING MEATS 8/21/14

CATTLE: Cash cattle last week: $153.00-157.00 and $244.00; on 177 boxed loads cut outs lower @ dn. $1.36 @ $251.55(c), dn.$.84 @ $243.07 (s) on good demand; Carcass Equivalent: $231.53 dn. $.90.

COMMENTS: Once again, the beef movement is impressive and as mentioned the only ‘positive’ around right now. However, just a few days of it not enough to clean out excess inventories but seems to supporting August’s cattle discount. Weekly beef export sales fell 23% to 7,700t and rather weak; cattle on feed report tomorrow likely to only effect spreads; heard of some sales in Nebraska at $152.00, Iowa $153.00; open interest fell 1200 led by Q/V amid moderate volume; sell strong rallies still in effect.

HOGS:
Interior cash hogs lower @ dn. $3.17 (W), N/E (E): rough avg. $N/A. Pork cut outs fell $2.33 @ $106.42. Lean index 08/16 @ $109.25 dn. $1.90.

COMMENTS: Russia apparently stopping trucks moving through Kazakhstan carrying U.S. poultry; Hormel CEO says refilling pipelines, increasing processing schedules and sees higher hog supplies coming this fall; weekly pork export sales 24,400t and really meaningless as before; open interest little changed in total even as Oct. falls 1800 amid light-side volume; no opinion change.

Kleist Comments

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

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