Early livestock market comments
The cattle market was quiet Wednesday and trade may very well be done for the week. Asking prices remain quite stout, with Texas lots still asking $107.00 for cattle remaining on the lists. Feedlots in Kansas have remaining cattle priced at $106.00. Both areas have cattle priced well above the most recent bids...where they can even find a bid. Give the bid drop in slaughter rates this week and packers' struggle with margins, we think they maybe done buying unless the board gives them another opportunity to buy cattle cheaper.
The choice cutout was up $89 at $166.81 last night, with the select up $1.42 at $160.44. Spot volume very light for a Wednesday. Slaughter was reduced again, and the weekly total is now 22,000 head less than last week. If buyers are fighting the higher prices, they will soon find less beef to "not buy".
Cash hog calls are mostly steady this morning. Packers are done buying for this week and are working on next week. Most seem fairly well supplied for the first half of the week, but still need hogs for the back end.
The pork cutout gained $0.49 last night. Loins were quoted as steady, though we noted the weighted average continues to creep higher. Butts were steady. Heavy hams were steady/weak and other weight groups were not quoted. Bellies also remained unquoted. That market is reportedly balanced at the $100.00 level.
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TJE Cash trade information provided by Robin Fuller