Kleist Comments

MORNING MEATS 9/03/13

CATTLE: Cash cattle last week $123 south; $124.00 north; dressed $196 (bulk) Neb.; on 109 boxed loads cut outs: choice dn. $.04 at $195.67, select dn. $.54 at $183.66 on moderate demand. Carcass Equivalent: $183.24 dn. $.05.

COMMENTS: Last week’s cash cattle basically ends steady/dn. $2.00 in live and dressed and explains October’s reluctant to press on higher, extending its premium. Weather over the weekend looked generally fine and I’d expect Top-shelf clearance but the key will it be enough and consistent afterwardsto sustain it. We wait. Open interest fell 1,000 led by October off 5,378 (Dec. up 3741) amid moderate volume; C-O-T report: very neutral. Trade it.

HOGS:

Interior cash hogs yesterday mixed at dn. $.40/$1.07, rough avg. $87.20; cut outs dn. $1.87 @ $94.33; lean index as of 08/28 @ $96.20 dn. $.94.

COMMENTS: Cash hogs early seen weaker as per cut outs but buy daily cut outs tough to believe per se. Nonetheless, perhaps October hogs merely narrowing its discount to the live/lean with funds, traders currently in the mood of not pressing the market. Likely bear defense still a move/close over the ‘double top’ at $88.35; open interest rose 1,345 amid moderate volume; C-O-T report: largely neutral.

Kleist Comments

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

Disclaimer: Trading options and commodities involves risk of loss and my not be for every investor. Past trading results may not be indicative of future performance. Although information and opinions provided herein are compiled from sources believed reliable, the sender, EBOT Trading, or its principals cannot attest as to accuracy or assume any responsibility for any errors or omissions as the information may not be complete or events may have changed.