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Slow day expected

Agriculture.com Staff 07/26/2006 @ 7:30am

Another slow day is expected in the fed cattle markets though bids likely will become more widespread. The limited bids found on Tuesday were just $75.00-$76.00 live and $123 dressed.

Packers have stepped up the pace of slaughter this week after buying cattle cheaper last week and shoring up their profit margins. The stronger pace of slaughter does not seem to be hurting values too much. The choice cutout was up $0.82, with the select cutout down $0.26. The choice select spread bounced back out to $18.55 last night, still extremely wide for this time of year.

Japan will officially approve the resumption of beef imports from the US on July 27. All but 1 of the 35 plants inspected were approved for export.

Interior hog markets are called mostly lower this morning, with some areas expected to lose as much as $1.00 once again. Packers continue to slaughter fewer hogs this week; last night's kill was just 380,000 head versus 395,000 last week. The two day total is down 29,000 head from last week.

Butts were quoted lower last night and it appears that the export demand that had been soaking up excess supplies is satisfied. Loins rebounded a bit on the reduced slaughter this week, as did hams. Bellies were mixed but appear to be coming into some kind of support area. The cutbacks in slaughter this week are definitely having a positive effect on values.

For more information or trading ideas about this market, Please contact us at (877)787-6278 or email us at sales@linngroup.com,

Another slow day is expected in the fed cattle markets though bids likely will become more widespread. The limited bids found on Tuesday were just $75.00-$76.00 live and $123 dressed.

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