Thomas Elwood: Early livestock comments
Light trade developed in Kansas and Nebraska Monday afternoon after the futures market declined. There were about 7,000 head reported in Kansas at $106.50 to private sources by last night. That was up slightly from the weighted average of last week, but down $0.50 from the topside. Live trade of about 6,000 head was reported in Nebraska at $106.00, steady with the average last week, and down $0.50 from the topside. There were no bids in Texas and no trade reported.
The choice cutout was up $1.02 at $164.21 last night, with the select up $0.67 at $157.86. Spot volume was a little light. Packers appear to be reacting to the poor margin situation by cutting slaughter. Monday's kill was only 116,000 head, down 10,000 head from last week. Strength in the cutouts continue to come from end cuts, though middle meats held generally steady.
Cash hog calls are steady/weak this morning. Packers have plenty of hogs around them and margins have come in to the point where they don't have much room to be generous to producers.
The pork cutout gained $0.24 last night. Loins were steady/weak, with butts quoted steady to a penny lower. Hams were steady as were trimmings. Bellies were not tested by the USDA, but other sources indicate they were steady.
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TJE Cash trade information provided by Robin Fuller