Kleist Comments

MORNING MEATS 8/28/14
MORNING MEATS 8/28/14

CATTLE: Cash cattle last week: $152.00-155.50; on 178
boxed loads cut outs lower @ dn. $1.07 @ $247.41(c), dn.$.88 @ $237.60 (s) on good demand; Carcass Equivalent: $228.91 dn. $.56.
COMMENTS: If the beef movement is to be believed, I suspect it is ‘post-holiday’ refill business; speaking of the holiday, weather forecasts are “iffy” here with a chance of rain each day over the weekend and Monday, hopefully will not impact BBQ’s last major stand of the summer; weekly beef export sales rose 47% to a moderate/light 10,600t but still an improvement; open interest little changed in total even as Oct. falls 1350 amid light-side volume; important high of $149.37 held; my likely bear defense remains a close over $150.00.

HOGS:
Interior cash hogs lower @ dn. $1.26(W), N/E (E): rough avg. $N/A. Pork cut outs fell $3.56 @ $98.63 Lean index 08/26 @ $100.34 dn. $1.57.
COMMENTS: Trading getting thin again ahead of the weekend (meat traders notoriously add a day extra). October hogs rallied sharply and ‘failed’ to a degree and with it open interest rose 3,800 led by Dec./April amid moderate volume; weekly pork export sales seem back to ‘normal’ after the previous week’s insanity at a weak 7,600t but can we trust it? One thing of note: Russia did cancel 15,700t this time; likely bear defense now a close over $96.52 (position trades). Oh, about the cut outs: bellies fell near $14.00hwt! What a country. Can you reimagine the old futures contracts? RIP.

Kleist Comments

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

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