Home / Markets / Markets Analysis / Hogs market / Early livestock comments

Early livestock comments

Agriculture.com Staff 11/06/2006 @ 9:00am

Agriculture Online welcomes Thomas Elwood, livestock market analyst with The Linn Group, Incorporated. Elwood will be contributing daily livestock and meat comments.

Cattle
Showlists are expected to be a bit larger this week. Trade was moderate last week but some cattle were carried over. In addition, the industry is going to be getting into gradually larger numbers over the coming weeks. Asking prices are expected to start the week at $90.00-$92.00 live and $142 or better dressed.

The choice cutout was down $1.52, and the select cutout was down $1.15 on Friday night. Movement of boxed cuts didn't even make 1,200 loads for the week, which forced the substantial discounting on Friday. Grinds and trims moved fairly well, but at the cost of substantial discounting. Additional weakness is possible on the cutout this week after last week's 650 thsd head slaughter, which was up 3,000 head from the week before.

Hogs
Interior cash hog markets are expected to be about steady though undertones will be mixed depending on the region. The East looks to be a bit softer to start the week than the west.

Slaughter was nearly unchanged last week at 2.181 mill head compared to 2.177 last week. The continued heavy kills have put quite a bit of pork on the market and packers have seen margins deteriorate further despite some bump in values on a few items. Butts appear to have good demand at current levels and light hams seem to be starting their holiday run. Bellies are generally holding well on strong storage demand from the wide premium of futures to cash. Loins remain a bit on the defensive, however, and could see some additional downside this week.

The hog industry has the potential to see some cutbacks in production potential from this point going forward. Although hog prices are holding at values that would generally be profitable, the sharp run-up in feed prices is putting the squeeze on producers. The Dow Jones calculated hog/corn ratio had declined from 30.0 the first week in September to 15.8 this past week.

For more information or trading ideas about this market, Please contact us at 877/787-6278 or e-mail us at sales@linngroup.com.

Agriculture Online welcomes Thomas Elwood, livestock market analyst with The Linn Group, Incorporated. Elwood will be contributing daily livestock and meat comments.

CancelPost Comment
MORE FROM AGRICULTURE.COM STAFF more +

Farm and ranch risk management resources By: 07/07/2010 @ 9:10am Government resources USDA Risk Management Agency Download free insurance program and…

Major types of crop insurance policies By: 07/07/2010 @ 9:10am Crop insurance for major field crops comes in two types: yield-based coverage that pays an…

Marketing 101 - Are options the right tool… By: 07/07/2010 @ 9:10am "If you are looking for a low risk way to protect yourself against prices moving either higher or…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Are We In a Climate Change?