A strong close to the futures market Tuesday keeps asking prices firm. Asking prices are now $107.00- $108.00 live in the Panhandle. Kansas area lots were still asking $105.00-$106.00 live as of last night, but that could change if the board continues strong this morning. Nebraska lots have cattle priced at par with the December futures, but would likely be will to trade at 1 under. Packers are still largely absent from the scene and we have not been able to find a bid. Kill/cut margins remain in the red, but they are buying for a full kill week next week. The beef is moving higher, but the higher prices may not come fast enough to offset what will surely be a higher price paid for cattle this week.

The choice cutout was up $0.95 at $161.27 last night, with the select up $1.56 at $154.77. Volume was light as the East coast continues to dig out from the snowstorm. Middle meats held at least steady last night, and end cuts were higher. Packers are working hard to get a head of the game as they anticipate paying higher for cattle again this week. Fortunately for them, export business remains strong.

HOGS

Cash hog calls are steady/firm this morning. Packers are buying for their first full kill in two weeks and are actively sourcing hogs. Kill/cut margins remain good and bids are expected to remain steady/firm for the next few days.

The pork cutout lost $0.34 last night. Extra retail product began showing up despite smaller production. Loins were quoted weak to 3 cents lower, while butts were steady to 2 cents lower. Hams were steady on the day. Bellies were unquoted again, but were said to be about steady.

Last night's CME storage report showed a net in-movement of 6.117 mill lbs compared to a net in- movement last year of 2.084 mill lbs. Stocks on hand now total 57.126 mill lbs compared to 35.110 mill lbs last year.

For more information or trading ideas about this market, Please contact us at (800)254-1753 or email us at sales@linngroup.com

TJE Cash trade information provided by Robin Fuller