The cattle market is expected to be quiet today unless the futures market falls apart. Packer margins will move back into the black next week only if the beef halts its slide. They will be looking for any opportunity to save money on cattle again.

The choice cutout was down $0.59 at $184.14 last night, with the select down $1.71 at $177.90. Volume picked up substantially. Buyers are quite short bought, but took advantage of discounts the past couple of days to replenish inventories. It will be interesting to see if forward sales perked up as well this week. Domestic demand is still called a bit dull overall.

HOGS

Cash hog calls are steady to $1.00 lower again this morning. Packers are still struggling with negative margins after another round of discounting last night in the pork.

The pork cutout lost $0.68 last night. Loins were quoted a penny lower with butts quoted 2 cents lower. Pork bellies got hit with another 5 cent drop in the quote. Hams held steady. We expect the cutout to decline again tonight. Pork demand is pretty dull at this point.

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TJE Cash trade information provided by Robin Fuller