Showlists are larger this week in all areas, though the increase in Texas is very small. Asking prices start the week at $114.00 to a few at $115.00 in the south. Cattle in Nebraska are priced at $4.00 over the June futures. We have not found any bids yet and packer inquiry remains light. The break in futures Monday likely will lead packers to press the market again this week.

The choice cutout was up $2.73 at $177.52 last night, with the select up $1.14 at $171.88. Volume was smaller than last Monday, but still very good compared to recent weeks. End cuts continue their contra-seasonal rally. Middle meats gained in values as well, though retail continue sluggish. The loin and rib are both enjoying some last minute Memorial Day demand, but there are concerns that volume will drop following the holiday.

HOGS

Cash hog calls are mostly steady this morning, though the few packers that still need hogs for the end of the week could lend a firm tone in some areas. Most packers have been able to get covered for this week's needs surprisingly easily given how tight we heard numbers were for this week.

The pork cutout gained $2.96 last night, pushing into new record highs for this particular calculation series. The previous high was back in August during the heat wave. Loins were steady/firm, while butts were steady to another 5 cents higher. Memorial Day demand likely is peaking this week, and there are concerns that prices will fall apart into the end of the month. Heavy hams were up 4 cents, with lighter weights unquoted. Bellies were unquoted.

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Written by Robin Fuller. For more information or trading ideas about this market, Please contact us at (312)896- 2001 or email us at sales@linngroup.com.