Asking prices remain strong despite the bobble in futures Tuesday. Panhandle feedlots are asking $111.00 live this morning, with Kansas cattle priced at $110.00. Nebraska lots have cattle priced par with the futures market, but reportedly would be willing to take $1.00 under. There are no bids yet. Packers likely are hoping yesterday's reversal in February futures will lead to further selling this morning and allow them to pick off some cattle at steady or lower money in Kansas.

The choice cutout was up $1.26 at $172.81 last night, with the select up $1.66 at $168.89. Spot volume was light as prices continue to skyrocket and virtually all primals gained ground. Ribs led the way higher last night, with chucks also quite strong. Round continued to gain ground as well. Loins were marginally higher.

HOGS

Cash hog calls are mostly steady again this morning though with firmer tones expected in the West. This likely is due to the expected presence in the market of the packer that sets the topside for the week. We note Iowa/S. Minn barrow and gilt weights declined a pound last week, so the more aggressive slaughter rates after the holiday's do seem to be whittle away at numbers. Weights still remain over 6 lbs heavier than last year.

The pork cutout gained $0.13 last night in slow trade. Loins were quoted as mostly steady. Butts were steady to a penny lower as price resistance continues at these levels. Ribs remained strong. Middle weight hams were 2 cents lower with other weights not quoted. Bellies were unquoted and we hear product is tight, with little trade taking place. Note the CME storage report is delayed until tonight due to the MLK holiday.

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TJE Cash trade information provided by Robin Fuller