Showlists are larger in all regions except for Kansas, which is showing a small decline. Asking prices are lower this week as feedlots acknowledge the coming reductions in slaughter over the holidays. Asking prices are $103.00-$104.00 live in Texas, but just $102.00 or better in Kansas. Nebraska feedlots are asking $103.00 live and $163 dressed. There are no bids yet and trade is expected to hold off for another day or so as packers work to save money again this week.

The choice cutout was up $1.06 at $164.80 last night, with the select up $0.18 at $152.75. Volume continues very light compared to the level of slaughter. Weekend clearance of beef was spotty due to the winter storm, which kept many shoppers at home. Forward sales were also somewhat lackluster, continuing the pattern of the past few weeks. Middle meats remain generally under pressure, though some last minute purchases of choice rib cuts boosted that value unexpectedly last night. That was the major contributor to the big gain in the choice cutout; we expect that to correct over the next couple of days.

Cash hog calls are mostly steady this morning. Some mixed undertones are present as producers get dug out from the storm. The industry carried over a lot of hogs from last week. Saturday's slaughter was revised downward to just 120 thsd head in last night's report from the USDA. Since early estimates were for slaughter to be near 200 thsd head, that is about 80,000 head that were carried over into this week.

The pork cutout gained $0.06 last night as firm pricing on fresh pork cuts offset continued weakness in hams. Loins were quoted 2 cents higher, with butts firm to a penny higher. Heavy hams were 3 cents lower, with other weights unquoted. Bellies also were unquoted again. We expect coming reductions in slaughter during the next two weeks to put a floor in hams prices soon, and bellies may begin to rally a bit.