Early livestock comments
Kansas saw a small clean-up type trade on Thursday at $108.00, steady with Wednesday's trade. We did not find any trade in The Panhandle. A few thousand traded in Nebraska at $107.00-$109.00 live and $174-$175 dressed. Today is expected to be quiet in all areas.
The choice cutout was down $1.80 at $175.59 last night, with the select up $0.17 at $172.57. The large decline in the choice cutout was led by a huge drop in rib values. Loins also were weak. End cut values were not nearly strong enough to offset the declines in middles. In the select carcass, however, the drop in middles was not nearly as large, and was offset by strength in the ends. Volume was good again. Although total volume on cuts likely will not reach last week's level, it could still exceed 1,000 loads again this week.
Cash hog calls are mostly steady again this morning though we still expect to see firmer bids out there. There are good sales for Memorial Weekend and packers have to slaughter larger numbers of hogs to meet the orders despite declining margins.
The pork cutout lost $0.98 last night. We think last night's decline was the beginning of a potentially large drop in the cutout in the next week as Memorial Day buying subsides.
Loins were quoted steady/weak, with butts 3 cents lower. Ribs settled back from Wednesday's surge. Middle weight hams were 4 cents lower, with heavy hams quoted steady. 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 email@example.com.