Cattle traded at $104.00 live in the south on Tuesday. Not only did the board collapse on Monday, but there is a seasonal tendency for the basis to narrow into delivery. Volumes were good and we don't look for much more in the way of trade other than some clean-up. A light trade was reported in Nebraska at $170-$171 dressed and $104.00-$106.00 live. More trade is expected today unless we find quite a few more numbers from overnight.

The choice cutout was up $1.63 at $178.96 last night, with the select up $0.57 at $173.28. Volume was light; it appears Memorial Day demand has been satisfied. There is still some light fill-in business ahead of the weekend, and pricing is obviously firm. We are hearing of some discounts into June, though middles appear to be mostly holding together ahead of Father's Day.

Hog calls are steady to lower this morning as product continues to fall apart. Packers are still struggling with poor margins and are buying for a light kill next week given Monday's holiday. Plans for next Saturday are still up in the air depending on how margins do. Numbers have been coming fairly easily. Barrow and gilt weights in Iowa/S. Minn held about steady last week despite the pick up in slaughter.

The pork cutout lost $1.07 last night. Loins were quoted 4-7 cents lower, with butts down 3-7 cents. Ribs also were sharply discounted now that Memorial Day buying is over. Hams saw more discounting on Tuesday. Middle weight hams were 3 cents lower and heavy hams were quoted 2-3 cents lower. We expect to see renewed demand now that prices have fallen back into the mid 70's. Bellies held steady.

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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.