By Thomas Elwood

Linn Group Inc. Livestock Analyst

Showlists are expected to be even to a little bit larger this week on generally increasing numbers, but 

feedlots remain extremely current.  Early indications are that asking prices will start the week at $97.00 

after feedlots successfully held for higher money last week.  Packers became more aggressive about 

buying cattle as trade progressed last week, paying up to $95.00 on a live basis.     

 The choice cutout was up $0.28 at $154.56 Friday night, with the select up $0.29 at $147.31. Volume 

for the week was smaller than the previous week, but sources were still fairly pleased with the 

movement given the strong rally in prices.  Slaughter was down 13,000 head from the previous week, 

and that should help to keep supplies relatively tight early this week.  The cooler weather and start of 

school in many areas should boost beef demand short term. 

HOGS

Cash hog market calls are mostly steady this morning.  Firm fresh pork pricing and plans for a big kill 

this week are keeping bids from declining.  That likely is a temporary situation, however, now that the 

weather has cooled over much of the Midwest.  A big cool front moved down over the weekend, 

bringing significantly cooler temperatures and lower humidity over most of the major hog growing 

areas.  This will allow for easier movement of hogs to slaughter as well as increased weight gains.  The 

bigger runs may not hit right away, but they are definitely coming. 

The pork cutout gained $0.18 Friday night. Loins were quoted 1-4 cents higher, with butts firm to 2 

cents higher. Most processing cuts were not established by the USDA on Friday after price weakness 

earlier in the week.  Now that hog slaughter will be consistently above 2 mill head in the coming weeks, 

and perhaps even exceeding 2.1 mill head, we think hams and bellies will struggle.