Livestock commentary-Robin Fuller
Packers bids are $104.00 live across all regions. Feedlots have been passing those bids as they try to hold for at least $105.00, the price packers paid for cattle in Kansas on Friday. Trade is possible today, and both sides will watch the board today for sign of direction. Another rally could spur some $105.00 trade; conversely, any weakness likely will trigger trade at the $104.00 bids.
The choice cutout was down $1.28 at $175.41 last night, with the select down $1.10 once again at $169.09. Volume was relatively light despite aggressive discounting in some items for quick ship. Every primal lost value, even middles which should be seeing some better demand right now.
Hog calls are mostly steady this morning. Barrow and gilt weights in Iowa rose 0.7 lb last week. We expect to see weights come back down this week as extreme heat across the Midwest reduces feed consumption.
The pork cutout gained $0.77 last night. Butts held steady on the day, though loins continued weak. Hams did not trade; industry sources report pricing is about steady. Bellies were quoted another 2 cents lower. There are rumors of new export business. Countries mentioned are S. Korea, China and Russia.
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.