Cattle traded in light to moderate volumes in Kansas late Monday afternoon at $105.00 live, steady with the late trade last week, but down $1.00 from the weighted average. Trade came after a weak close in futures, and was in line with historical basis levels. Texas feedlots did not receive any bids yesterday and asking prices have declined to $108.00. It is possible that packers will hold off bidding until they see the direction of futures today. Texas lots have been much more stubborn about pricing recently than Kansas. We also have not found any bids yet in Nebraska, but that could change today given the trade last night in Kansas. - The choice cutout was down $0.10 at $173.42 last night, with the select up $0.03 at $170.67. Spot trade volume was light, even for a Monday. The beef markets appear to be stabilizing after a sharp run higher over the past few weeks. Packers are expected to keep cattle slaughter restricted this week, about in line with last week, despite strong margins. This speaks to the uncertainty that the market feels about consumer acceptance of sharp price increases.

HOGS

Cash hog calls are mostly steady again this morning. The market seems to be following the same pattern of last week. Margins are black and packers don't want to discourage producers from selling by bidding lower for hogs. Slaughter is expected to move back towards the 2.18 mill head mark this week.

The pork cutout gained $0.59 last night in slow trade. Bone-in loins were unquoted, with butts steady/firm. Boneless loins were steady/firm as well. Heavy hams were quoted steady, with lighter weights unquoted. Bellies were unquoted as well.

S. Korea is slashing meat import tariffs as they try to make up for production losses due to FMD and bird flu. South Korea will levy no tariff on up to 60,000 tonnes of frozen pork to be imported through June, while meat imports above the volume would be charged 25 percent of current tariff, the finance ministry said in a statement on Tuesday.

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TJE Cash trade information provided by Robin Fuller