Thomas Elwood: Early livestock comments
Trade is expected in some areas today and the pricing will be heavily dependent on action in the futures market. Asking prices are still at $105.00-$106.00 in the south and $105.00 live/$166 dressed in the north. The lack of follow through yesterday to Tuesday's big reversal has kept feedlot hopes for a steady market this week alive. Bids remain no better than $101.00 live and $162 dressed.
The choice cutout was up $0.16 at $164.87 last night, with the select up $0.96 at $154.17. Volume was quite modest for a Wednesday. Choice ribs got hit pretty hard last night, but those losses were offset by gains in the loin. Choice end cuts were up marginally. The select cutout faired better as the rib primal gained along with the loin. As with the choice end cuts, select chucks and rounds were just marginally higher.
Cash hog calls are mostly steady this morning. There is talk of some firmness in bids on hogs for next week's slaughter. Slaughter next week is expected to be large ahead of two weeks of holiday shortened schedules.
The pork cutout gained $0.13 last night. Loins were quoted 2-9 cents higher for 1⁄4" trim but just steady on the 1/8" trim. Butts were quoted higher again by 1-3 cents. Heavy hams were 2 cents lower from the last printed quote a week ago. This is one of the most anemic rallies in ham prices that we can remember. It is due largely to the huge "throw" of heavy hams this year along with larger than year ago slaughter.
Bellies were unquoted, but said to be about steady.