Thomas Elwood: Early livestock commentary
Packers are maintaining bids of just $92.00 live in the south, but interest seems a bit better this morning. Bids in the north have been no better than $$147 dressed and $92.00 live as well. Trade is possible today, but with the board continuing strong, it likely will be higher than last week rather than steady.
The choice cutout was up $0.42 at $155.52 last night, with the select up $0.65 at $146.50. Spot volume was slower again as buyers resist the rising prices. End cuts continue to be well cleared while middle meats are holding steady.
Cash hog market calls are steady to higher as the pork cutout continues to strengthen. Margins have improved enough that packers are becoming more aggressive. Saturday's kill is now expected to be 25,000 to 30,000 with the addition of another plant scheduling hours.
The pork cutout gained another $1.21 last night. Smaller production so far this week and renewed export business has cleaned up pork supplies, allowing packers to raise prices sharply. As with Tuesday, most of the rally came from stronger processing items. Bellies were quoted 2-4 cents higher as were hams. Butts also were quoted higher, up 2-3 cents. Loins generally held steady.
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