Livestock commentary-Robin Fuller
A small number of cattle traded to a regional packer in Nebraska last night at $176 dressed, steady with the topside of last week's market. Asking prices are $106.00-$107.00 in Texas. Oklahoma and Kansas are asking at least $3.00 over the June, with Nebraska lots asking $4.00-$5.00 over. Bids in the south remain no better than $104.00 live. With no sign of the bid decline in values yet this week, we expect that feedlots will have more than enough incentive to hold the line on asking prices.
The choice cutout was down $0.18 at $172.81 last night, with the select up $0.92 at $166.67. Volume of graded cuts was good for a second day. Although the choice cutout lost a little ground, the USDA rated most primals as steady/firm on the day. Other market sources noted some discounting for rounds, but noted middles were firm.
Hog calls are steady to mostly higher this morning as numbers tighten. Iowa/S. Minn barrow and gilt weights dropped 2 lbs last week. This large decline likely came on a combination of heavy slaughter and high temperatures that slowed weight gains. It is an indication of just how current producers have become, and explains the tightness in numbers this week. Numbers will remain tight for the next several weeks, with kills running well below 2 mill head.
The pork cutout gained $0.64 last night. Butts were firm to another 2 cents higher, with the weighted average back up over $1.20. Loins were quoted steady. Hams were generally a penny higher. Bellies were steady. The reduced kill over the next several weeks should provide good support for the cutout, especially in light of additional S. Korean buying.
Written by Robin Fuller. For more information or trading ideas about this market, Please contact us at (312)896- 2001 or email us at firstname.lastname@example.org.