Thomas Elwood: Early livestock comments
Cattle traded in Texas on Tuesday at $105.50-$106.50, down $0.50-$1.50 from last week. The market had a weakening tone, with lower prices later in trade. Kansas saw active trade at $105.50, down $0.50 from Monday's light trade. Nebraska live trade also came at $105.50. A very small number traded on a dressed basis at $168 to mostly $169.00. Sources indicated regional packers were bidding $169 yesterday afternoon. More trade is possible today, particularly in Nebraska where dressed trade has yet to really get going.
The choice cutout was up $1.71 at $165.92 last night, with the select up $1.16 at $159.02. Spot volume was a little light again. End cuts are still leading the way, though all primals gained in value as production declines. Packers continue their strategy of slaughtering fewer cattle; the two-day total is down 16,000 head from last week.
Cash hog calls are mostly steady this morning. Numbers remain more than adequate for packer needs, but a pool of cold air is dropping down from Canada behind a winter storm, and the combination could limit hog movement short term.
The pork cutout lost $0.41 last night. Loins were steady, with butts quoted steady/weak. Heavy hams were steady, with other weights not quoted. Bellies were not tested by the USDA; other sources indicate the market has stabilized at $100.00.
Last night's CME storage report showed a net in-movement of 1.535 mill lbs compared to a net in- movement last year of 1.973 mill lbs. This was the first time since the storage season began that in- movement was less than last year. Stocks on hand now total 58.661 mill lbs compared to 37.083 mill lbs last year.
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TJE Cash trade information provided by Robin Fuller