Early livestock commentary
Showlists are uniformly larger this week, as the industry comes into seasonally larger cattle supplies. Asking prices are firmer, however, as feedlots look to take back some of the huge margins that packers are making. The futures market will have to cooperate, however, since hedged feedlots will willingly take steady money if the board declines. There were a few bids in Kansas yesterday at $104.00, steady with the bulk of last week's trade. Asking prices are mostly $107.00 in the south, with some cattle priced at $3.00 over the June. Asking prices in the north are $4.00-$5.00 over the June.
The choice cutout was up $0.31 at $177.46 last night, with the select up $0.78 at $173.39. Volume was good after an active weekend clearance prompted decent fill-in buying Tuesday. Middle meat asking prices are firm in anticipation of Father's Day. End cuts are softening a little as the weather heats up.
Hog calls are steady to $0.50 lower this morning. Packers are done buying for the limited slaughter this week. Margins are still poor, and they are not willing to chase hogs for next week yet. Some of our sources still look for a firmer tone to develop next week, but we think margins will have to improve first.
The pork cutout lost $0.18 last night. Loins were quoted mostly weak, and are still reportedly easy to procure. Butts were steady and seem to have found a level of support around the $1.10 area. Heavy hams were steady to a penny higher last night, though some sources indicated product was still available. Bellies were steady.
Written by Robin Fuller.For more information or trading ideas about this market, Please contact us at (312)896- 2001 or email us at firstname.lastname@example.org.