Kleist Comments

MORNING MEATS 9/06/13
MORNING MEATS 9/06/13

CATTLE: Cash cattle last week $123 south; $124.00 north; dressed $196 (bulk) Neb.; on 178 boxed loads cut outs: choice dn. $.70 at $195.86, select dn. $.22 at $ 181.91 on good demand. Carcass Equivalent: $182.53 dn. $.37.

COMMENTS: Fortunately my ‘tilt’ was only buying breaks yesterday, wrong on several levels but the major one not reading my own comments as funds exit beef and enter pork, to wit open interest fell 2,556 led by October off 5158, volume moderate/good. Retail featuring not surprising us with continued large grilling items featured; but beef weekly export sales fell hard to 17,900t, best buyer Japans 7,800t, shipments rose 2%; while jobless rate fell to 7.3% vs. 7.4%, July was disappointing with only 169,000 jobs created and with June’s numbers revised down sharply (off 58,000hd.) to only 162,000; Tyson’s ban on weight drug goes into effect today. No strong feel. By the way, few reported in Nebraska dressed at $194-195.00 yesterday likely no surprise.

HOGS:

Interior cash hogs yesterday lower at dn. $.24/$.44, rough avg. $87.00; cut outs dn. $.36 @ $94.13; lean index as of 09/04 @ $91.45 dn. $.32.

COMMENTS: Cash hogs called weaker but nothing dramatic as yet. Light weights has kept pork values from dropping much and retailers booked at cheaper prices, allowing decent features still; weekly pork export sales fell to 4,600t and shipments off 32% (I still feel very uncomfortable using these numbers with any confidence); open interest rose 5,700 led by Dec. Up 5836 amid strong volume…any limb to go put on here? December damn near a solid bearish reversal on my open interest and volume readings and as such hedge sales around $86-87.00 need to be started. Spec sales in October might be right around the corner.

Kleist Comments

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

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