Limited hog trade expected Tuesday
Feedlots have raised asking prices overnight after watching the futures soar higher on Monday. Texas lots now have cattle priced at $109.00. Nebraska lots have cattle priced par with the futures, so are effectively asking $109.00 also. There are still no bids. Packer margins are huge, and we expect they will be willing to pay up at least $1.00 this week in order to keep kill lines rolling.
The choice cutout was up $0.22 at $173.07 last night, with the select up $0.14 at $170.89. Spot trade was light. Chucks and rounds showed a little weakness, but middle meats made up the shortfall. Trade could be limited again today as the Eastern half of the country hunkers down for a big winter storm.
Cash hog calls are steady to $0.50 higher this morning in what is expected to be somewhat limited trade. A massive winter storm in dropping snow and ice across the Eastern half of the country and it limiting trade.
The pork cutout gained $0.04 last night. Bone-in loins were mostly steady again. Butts rallied sharply, with the weighted average up 12 cents. Hams and bellies were unquoted. Supplies of both items are said to be limited, and slaughter reductions with the winter storm will tighten supplies even more.
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TJE Cash trade information provided by Robin Fuller