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Thomas Elwood: Early livestock comments

Agriculture.com Staff 12/07/2010 @ 8:10am

Showlists are larger in the south and smaller in the north. Overall, available numbers are larger, thanks mostly to a big increase in the Panhandle list. Asking prices are firm, at $106.00-$105.00 live in the south and $105.00 live/$166 dressed in the north. There are no bids found yet this week, but nobody is ruling out trade today after what happened last week. The firm close on futures last night points to at least a steady market if we do see trade today.

The choice cutout was up $1.15 at $165.15 last night, with the select down $0.05 at $152.56. Volume was light, even for a Monday. Choice primals were all higher yesterday. Select middles were weak and offset gains in the end cuts. It appears the select middles are in the process of peaking seasonally.

HOGS

Cash hog calls are steady/weak this morning. Packers are nearly done buying for the smaller kill this week. Slaughter likely will not reach the 2.3 mill head mark, with only 145 thsd head on the books for Saturday's slaughter as of Monday night. This is not enough to keep up with hog numbers according to sources and the industry likely will begin to back up hogs even before the end of the month holiday's. A big kill next week could help to alleviate this, but the weight situation likely will not improve until later this winter.

The pork cutout gained $0.11 last night. Loins and butts were generally steady, though we hear that some packers are still having trouble moving adequate volumes of loins.

Bellies were quoted steady. Hams were unquoted, but pricing is said to be firm in anticipation of smaller production this week.

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